Moody's raises Greece's rating two notches

Moody's ratings agency upgraded Greece's credit rating by two notches late on Wednesday to B3, saying the country is set to return to market-based funding following the conclusion of its current bailout program in the summer.

Despite the upgrade, which follows similar moves by ratings agencies Fitch and Standard and Poor's, Greece's credit rating remains well within junk, or non-investment grade, territory.

Moody's, however, noted that the risk of another Greek default or restructuring on debt owed to private investors has "materially declined."

The agency said Greece's ratings outlook remains positive, and a further upgrade could follow if the country's reform program leads to more positive than expected results, with sustained economic growth and a more rapid fall in the country's debt to GDP ratio.

Greece has depended on international bailouts since 2010,...