Fitch upgrades Greece´s issue rating by one notch

ATHENS - Doğan News Agency

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International ratings company Fitch has upgraded Greece’s credit rate by one notch, right after the declaration of first privatization project turning over 14 major airports to a German company, following a new credit agreement having been reached with the tripartite committee of Troika consisting of European Union, International Monetary Fund and European Central Bank on August 14.

The statement released by Fitch said that the company has upgraded the credit rate by one notch to “CCC” from “CC” and pointed to the approval of both Greece and creditors to reach and affirmed the new credit agreement of 86 billion euro as the decision’s reason. Within the decision, the short-term foreign currency IDR has been affirmed at “C” and accordingly, the country ceiling has been raised by one notch to “B-” from “CCC.”

“The breakdown in relations between Greece and its creditors in January-July culminated in the explicit threat of a Greek exit from the eurozone being made by key creditor countries. It is reasonable to assume that if such a situation was reached again, the risk of “Grexit” would be high” has urged, on the other hand, Fitch’s statement.

“Third official bailout program has reduced the risk of Greece defaulting on its private sector debt obligations.

The program is intended to facilitate an eventual return to market funding. However, the risks to the program’s success remain high. Meanwhile, the political situation in Greece remains unpredictable” said the statement, urging that a snap election in Greece could raise uncertainty over the future direction of relations with the creditors.

With the first privatization effort of Greece, marking the first of the left-wing government’s term, the right to operate 14 busy airports including the holiday islands of Mykonos, Santorini, Kos, Thessaloniki, Rhodes and Lesbos has been turned over to the German airport operator Fraport AG for 40 years.

Following the announcement, voice of Left Platform the daily Iskra has referred to the privatization as “obedience of the Syriza government.”