Stock market prices rating upgrade in
The stock market has already begun to price in a decision by credit rating firms to offer the Greek economy investment grade, a prospect that is fueling a buying spree on the Athens Stock Exchange, pushing share prices and turnover to the highest levels since 2014.
More than 1,100 new foreign investors opened new accounts in the Greek market in the first month of 2023. Foreign investors had expressed their interest in the Greek market during a roadshow organized by the Athens Stock Exchange in London at the end of 2022, where representatives of international investment funds – with assets under management of more than 30 trillion US dollars – were present.
Obtaining investment grade will contribute toward the upgrading of the stock market and help attract new capital from long-term investors, while it will also upgrade the Greek market from emerging into developed. Such a development will change the market’s map as it will facilitate investment decisions from risk management commissions.
Investment grade will also lead to an upgrade of banks’ credit ratings, allowing lenders to borrow at lower interest rates from the interbank market and borrow from the ECB using state bonds as collateral.
