/RATINGS: Commerzbank On The Road To IG Status

Commerzbank note that “there is a chance that Greece could regain its first investment grade rating on Friday. Scope rates Greece BB+ (just one notch below IG) and raised the outlook to positive in December 2022. While the significant economic challenges cited at the time have barely changed, 10y funding costs have eased further since the affirmation in March and Scope sees post-election political continuity and a continuation of the prudent fiscal stance amid European support as credit positive.”

• “While the immediate market impact would be limited as Scope's ratings do not (yet) play a role in the major bond indices or ECB eligibility, an upgrade and its rationale could be an indication of how quickly the other rating agencies may act.”
• “An update by DBRS (BB high/stable) will be next on 8 Sep, followed by Moody's a week later, with Greece still three notches away from IG. S&P's scheduled review on 20 Oct will therefore be the most relevant, given the borderline BB+/positive rating, while Fitch (BB+/stable) is due in December.”