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Morningstar DBRS Elevates Greece’s Credit Rating to ‘BBB’ with Stable Outlook

DBRS Morningstar has raised Greece’s credit rating to ‘BBB’ from ‘BBB low,’ citing improved banking stability and the country’s ongoing efforts to reduce its general government debt. This upgrade marks another milestone for Greece, which saw its investment grade status reinstated by DBRS in 2023, with a shift in the outlook from positive to stable.

The credit agency highlighted that Greece’s banking sector, once burdened by legacy risks, has shown considerable recovery, contributing to the country’s positive fiscal performance. Debt reduction has been a key driver of this progress. Since 2020, Greece’s debt, the highest in the eurozone, has been slashed by more than 40 percentage points, now standing at 154% of GDP in 2024, with projections for further declines.

Looking ahead, Greece is expecting a 2.3% growth in economic output for 2025—more than double the eurozone’s forecasted average. The country is also set to achieve a primary budget surplus of 2.4% of GDP, driven by strong tourism revenues and increased investments. As a result, Greece’s debt-to-GDP ratio is expected to fall below 140% by 2027, marking a significant improvement.

This credit rating upgrade is part of a broader trend of positive assessments from other major rating agencies, including S&P Global and Fitch, following a period of 13 years in the junk category. However, Moody’s remains cautious, still rating Greece just below investment grade.

Greek banks, once reeling from the debt crisis and nationalization in 2009, are now on a steady recovery path, posting profits for the first time in years. The European Central Bank gave the green light for dividend payments to resume in 2024, marking a key milestone in the country’s financial recovery.

Electric Vehicle Subsidies in Cyprus: Urgent Calls for Government Action

The Motor Vehicle Importers and Electric Vehicle Association (Semio) has urgently called upon the Transport Ministry for immediate action concerning the ongoing hurdles with electric vehicle (EV) subsidies in Cyprus.

Semio expresses its concern, warning that any further delays could exacerbate financial strain on its members and heighten consumer dissatisfaction. A formal meeting with the Transport Minister is on the agenda to clarify the government’s position on the subsidy program.

Uncertainties and Impacts

The sudden stop of the EV grant scheme has stirred worry among car importers and potential buyers, leaving stockpiles of electric vehicles in limbo. This unexpected pause in government-backed support has echoed across the industry, with numerous consumer complaints surfacing.

Amid these events, there’s also the broader backdrop of the Cyprus government’s decision to reallocate funds within the national Recovery and Resilience Plan (RRP), aiming to stay aligned with EU financing requirements.

A Call for Dialogue

Despite the ministry’s assurances of pursuing additional funding and maintaining alignment with national energy objectives, Semio criticizes the lack of communication and urges consultation before implementing changes.

On a related note, Cyprus faces challenges in achieving its ambitious EU-mandated goal of registering 80,000 electric vehicles by 2030. The road ahead appears daunting unless a cohesive strategy is adopted.

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