Moody’s Investors Service announced on Friday that it had upgraded Greece’s long-term issuer rating as well as all senior unsecured bond and programme ratings to Caa2 and (P) Caa2 from Caa3 and (P) Caa3, respectively.

According to Moody’s, the key drivers for this action were as follows:
1. The successful conclusion of the second review under Greece’s adjustment programme and release of a tranche of 8.5 billion euros in the coming days.
2. Improved fiscal prospects on the back of 2016 fiscal outperformance, expected to lead soon to a reversal in the country’s public debt ratio trend. Moody’s expects the public debt ratio to stabilise this year at 179% of GDP, and to decline from 2018 onwards, on the back of continued substantial primary surpluses.
3 .Tentative signs of the economy stabilizing after three years of stagnation and a cumulative loss in output of more than 27% since the onset of Greece’s crisis.