Greece gets credit rating thumbs-up

Greece has had its credit rating lifted out of default territory by the agency Fitch, the first major rating body to take the widely expected move after Athens completed a swap that cut its debt by about €100 billion (£83bn).

The move yesterday was the first time Greece’s rating has been upgraded since the debt crisis exploded at the end of 2009.

The three major rating firms have repeatedly slashed Greece’s rating throughout the turmoil, cutting it to “default” over the debt deal in which people lost most of their investments in government bonds.

Following new EU/IMF rescue plan, Greece’s debt is expected to fall to under 120 per cent of GDP in 2020 from 160 per cent now. “The agency considers that significant and material default risk remains in light of the still very high level of indebtedness,” Fitch said, referring to the debt swap deal.