Moody's Upgrades Greece's Credit Rating to Baa3 from Ba1

Moody's announced an upgrade of Greece's credit rating to Baa3 from Ba1.

Greek Finance Minister Kostis Hatzidakis said on Saturday that the central government's primary surplus reached 3.5% of GDP last year, well above the government's target.

The agency announced an upgrade of Greece's credit rating to Baa3 from Ba1, noting that the public finance situation "has improved more rapidly than we anticipated" as a key factor in its decision.

Moody's highlighted the government's political position, institutional improvements, and stable political environment, and said it expects Greece to "continue to generate substantial primary surpluses, which will steadily reduce its high debt burden."

The government's most recent estimate was for a primary surplus of 2.5% of GDP, excluding debt servicing costs.

"In a month from now, when the final figures come in, you will see a primary surplus of around 3.5% of GDP and a fiscal surplus of 0.2%," Hatzidakis, whose term is about to end, said during a meeting with new Finance Minister Kyriakos Pirakakis.