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Today, the credit rating agency Standard & Poor’s (S&P) has announced a significant change in its outlook on Greece, while holding Italy’s rating constant.
In its latest report, S&P upgraded the outlook on the Greek economy’s credit rating from “negative” to “stable”. S&P noted that Greece had achieved a substantial amount of success in implementing economic reforms and instituting fiscal discipline. It went on to state that the nation’s GDP has shown signs of growth in spite of the difficulty and austerity measures imposed by the Greek government in recent years.
However, S&P declined to upgrade Italy’s credit rating from its current level of BBB+ with a “stable” outlook, citing “high long-term structural economic and public finance rigidity, elevated public debt and the fragile political situation” that continues to plague the country.
S&P’s announcement is the latest sign that Greece may be making some positive economic strides in its recovery from the tumult of the past decade. As all eyes are now on Italy, it remains to be seen whether the nation is able to revolutionize its economy in a manner similar to Greece.
All in all, today’s report from S&P has highlighted the progress Greece has made in its economic recovery, while emphasizing that Italy still has much to do in order to reboot its financial health.