Sudden Moody’s upgrade of Greece’s long-term foreign currency debt to B1

Moody’s provided a much-needed fillip to the Tsipras government in Athens, raising Greece’s long-term foreign currency debt was upgraded to B1, with a stable outlook from B3.

The development supports the Greek government’s plan to foray into the markets over the coming period to sell new debt, which in itself increases economic confidence and helps ruling but poll-trailing SYRIZA in its pre-election campaign

The new ranking is still four levels below investment grade.

“The ongoing reform effort is slowly starting to bear fruit in the economy,” Moody’s said.