Fitch keeps Greek credit rating at ‘BB’

Fitch Ratings affirmed Greece’s sovereign credit rating at “BB” on Friday, also maintaining the country’s outlook as “stable.”

In its regular report the rating agency said the stable outlook reflects the degree of confidence in Greece’s fiscal sustainability despite the serious shock to the economy from the pandemic.

Fitch estimates that the economy contracted 10.2% in 2020 and anticipates a strong rebound in the next couple of years provided that the global health crisis is contained and the Next Generation EU resources are absorbed.

Nevertheless, the agency notes, delays in the vaccination programs, not only in Greece but also in its main trading partners, will slow down the recovery of the tourism sector, while delays with the absorption of EU resources will also slow the growth of domestic demand.

The report projects that real gross domestic product will start to recover strongly as of the second quarter of the year, although the recession of the current quarter will contain growth for the entire 2021 to just 3%.

Fitch expects the economic rebound and the boost from the EU funds to accelerate growth to 7.6% in 2022.