Rating agency Moody’s is expected to upgrade Greece’s credit rating today, after it dubbed the enactment of a critical bill in Parliament over last weekend as “credit positive”, which in turn resulted in the payment of the next loan installment.
Despite the positive developments in finances though, the rating agency notes that with elections coming up and the coalition’s parliamentary majority having been reduced, there is still a significant political risk.
Nevertheless, the reforms voted last Sunday are expected to contribute towards financial growth in Greece, with the America credit rating agency expecting a 0.3% rate for this year, compared to the coalition government’s 0.6% prediction.
The recent capital increases of Alpha Bank and Piraeus Bank were also deemed credit positive, since the two banks will be in the position to respond to the capital demands of the Bank of Greece.
The recapitalization means that the banks will be in the position to reduce the Hellenic Financial Stability Fund’s stake; for Piraeus the HFSF’s share will drop from 80.9% to 67.3% and for Alpha Bank from 81.7% to 69.9%.
