S&P keeps Greek rating at ‘BB+’

Standard & Poor’s affirmed on Friday Greece’s credit rating at ‘BB+,’ leaving it just one step below investment grade and avoiding to take the big step and lift it out of “junk” status. At the same time, it maintained a “Stable” outlook for the Greek economy.

S&P, along with DBRS Morningstar, is one of the two agencies rating Greece one notch below investment grade.

The rating agency anticipates strong growth of 5.8% for Greece in 2022, but says that will slow down to 1.7% the following year, while the energy crisis in Europe and its effects cast a shadow on its prospects.

“After a strong 2022, we expect economic growth in Greece to slow in 2023 to levels below 2%, with possible further energy disruptions in Europe clouding the outlook,” the agency said.

“Higher energy prices and accelerating inflation will slow Greece’s gross domestic product growth in 2023 to less than 2%, against an estimated 5.8% in 2022,” it said.

At the same time, S&P noted that 12-month inflation in Greece looks set to recede from September’s multi-decade high, pushing wages up only marginally (0.9% year-on-year in the second quarter) and weakening demand.