MacroPolis

Fitch re-affirmed Greece’s credit rating to ‘BB’ on Friday night, maintaining the stable outlook.

Greece completed its third market foray for the year by issuing a 10-year bond of 3 billion euros. The coupon was 1.5 pct and the yield settled at 1.57 pct, suggesting a re-offer price of 99.375. The spread was close to 188 basis points.

In its regular rating cycle, S&P re-affirmed Greece’s credit score to ‘BB-‘, while it revised the outlook from positive to stable.

Fitch published on Thursday night a rating review for Greece outside its regular schedule in which the outlook for the country was revised from positive to stable, re-affirming the rating of ‘BB’ that it had granted in the end of January.

Greece completed on Wednesday its first transaction to boost its cash reserves amidst the pandemic crisis by issuing a 7-year bond that raised 2 billion euros.

Greece wants to signal to international markets that despite the heavy toll the pandemic is expected to inflict on the Greek economy, it can move ahead with its debt strategy.

After seeing its sovereign debt market decimated within a period of four weeks, Greece breathed a sigh of relief on Wednesday night when the ECB announced that it will include the country in its Pandemic Emergency Purchase Programme (PEPP).

The strong appetite for Greece’s sovereign debt has been visible over the last few weeks across the curve, with yields as low as 0.3 pct for the 5-year issue.

Fitch upgraded Greece’s credit rating on Friday by one notch to ‘BB’ and revised upwards its outlook to positive, bringing the country just two notches away from investment grade.

Greek government officials are due to begin meetings with the institutions’ mission chiefs on Wednesday as part of the fifth enhanced surveillance review, which Athens hopes will pave the way for its three fiscal demands to be met later this year.