Fitch ups Greece’s rating to a notch below investment grade

Credit ratings company Fitch has raised Greece's credit rating to one notch below investment grade.

In a report issued Friday, Fitch estimates that Greece's deficit will shrink to 1.8% of its gross domestic product in 2024 from an estimated 3.8% last year.

"There is some uncertainty around fiscal policies after the upcoming legislative elections but the risks are mitigated by a broad commitment to and a recent track record of fiscal prudence," Fitch said. Greece's outlook is stable, Fitch said in raising its rating on the country's debt to BB+ from BB.

Greek banks are another big reason for the upgrade, Fitch said, noting their "important progress in reducing non-performing loans."

Fitch forecasts Greece's GDP growth to reach 0.9% in 2023 and 2.3% in 2024.

Inflation is forecast to ease from 9.3% in 2022 to 5% this year, Fitch said, and only 1.5%...