June 25, 2018 / 9:36 PM / 21 days ago

S&P raises Greece's rating after debt deal with Euro Zone

June 26 (Reuters) - S&P Global Ratings raised long-term debt rating on Greece as it sees reduction in debt risks due to creation of cash buffers and extension of maturity on its debts.

The rating agency raised its long-term foreign and local currency sovereign credit ratings on Greece to ‘B+’ from ‘B’.

Euro zone finance ministers on Friday extended maturities and deferred interest of a major part of their loans to Greece along with a big cash injection ahead of its exit from its bailout in August.

"We believe this significantly reduces sovereign debt servicing risks over the next two years," S&P said. [bit.ly/2tuPQgl ]

Moody’s, which rates Greece at ‘B3+’, said on Monday the debt relief package offered by Greece’s creditors is credit positive for the overborrowed country.

The banking sector is making progress on reducing high levels of non-performing loans that will help boost growth, S&P said.

The rating agency lowered Greece’s outlook to stable and said outlook reflects the balance of risks to its creditworthiness. (Reporting by Suhail Hassan Bhat in Bengaluru; Editing by Arun Koyyur)

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