S&P raises outlook on Greece, affirms rating

S&P Global Ratings said on Friday it raised its outlook on Greece to positive from stable while affirming its B-plus/B ratings.

The outlook reflects a potential upgrade if Greek authorities were to boost competition in product markets, strengthen property rights, ease bankruptcy procedures and improve the enforcement of contracts, S&P said.

The ratings agency said it sees an enhanced policy stability supporting Greek banks and the economy, adding that the country’s growth projections will improve, driven by private investment in tourism and logistics due to large public infrastructure projects.

Real growth in gross domestic product is projected at 2 percent to 2.5 percent over the next three years, S&P said.

Last month, S&P raised its long-term debt rating on Greece, based on reduced debt risks due to the creation of cash buffers and the extension of maturity on its debts.

Eurogroup Chairman Mario Centeno said last week that eurozone countries are set to disburse a final 15 billion-euro bailout loan to Greece in August.

Greece has been living primarily on money borrowed from eurozone governments in three bailouts since 2010, when it lost market access because of a ballooning budget deficit, huge public debt and an inefficient economy and welfare system.

[Reuters]