Greek government debt raised to investment grade by Moody's, closing the door on a painful era

ATHENS, Greece (AP) — Greece’s center-right government on Saturday welcomed a credit rating upgrade by Moody’s, the last major ratings agency to lift junk status on government bonds that began 15 years ago during a severe debt crisis.

“(This) upgrade marks the closing of a great cycle for the Greek economy and certifies the country’s return to European normality,” Finance Minister Kostis Hatzidakis said, describing the action as “a success not only of the government, but of all Greeks.”

Moody’s announced the upgrade to Baa3 from Ba1 late Friday. It cited public finances that “have improved more quickly than we had expected” as a key factor in its decision.

The agency highlighted the government’s policy stance, institutional improvements and stable political environment, saying it expects Greece to “continue to run substantial primary surpluses which will steadily decrease its high debt burden."

Although ratings agencies began returning Greece to investment grade in late 2023, the good news was met with relief by a government that has been hammered for weeks by strikes and protests over its handing of a deadly rail disaster two years ago.

Hatzidakis made the remarks hours before handing over the portfolio to Cabinet colleague Kyriakos Pierrakakis at a swearing-in ceremony later Saturday, a day after the government announced a reshuffle.

“Moody’s upgrade of Greece to Baa3 marks the final step in restoring our investment grade by all major rating agencies, highlighting Greece’s significant progress,” Prime Minister Kyriakos Mitsotakis said in an online post Saturday.

“We remain fully committed to reforms that attract investment, create jobs, and drive sustainable growth,” he said.

Greece spiraled into crisis in 2010 and received three international bailouts to avoid bankruptcy and repair its public finances through successive and grueling austerity programs imposed by European Union lenders and the International Monetary Fund.

National debt as a percentage of gross domestic product peaked in 2020, rising above 200%, but has been steadily falling since and is expected to drop below 150% this year, according to Greek central bank projections.

Moody’s praised the government’s ongoing debt reduction efforts.

“Over a number of years, the Greek public finances have outperformed our baseline expectations, which increases our confidence that Greek debt will remain on a firm downward path,” it said.

“These improvements are due to both ongoing expenditure restraint and tax revenues that are rising quickly in light of ongoing institutional improvements in tax compliance and collection.”

Greek President Konstantinos Tasoulas, right, and Prime Minister Kyriakos Mitsotakis attend a swearing in ceremony at the Presidential palace, in Athens, Greece, Saturday, March 15, 2025. (AP Photo/Yorgos Karahalis)

Greece's government newly appointed members pose for a family photograph following a swearing in ceremony at the Presidential palace, in Athens, Greece, Saturday, March 15, 2025. (AP Photo/Yorgos Karahalis)

Greece's newly appointed deputy Prime Minister Kostis Hatzidakis signs a document following a swearing in ceremony at the Presidential palace, in Athens, Greece, Saturday, March 15, 2025. (AP Photo/Yorgos Karahalis)

Newly appointed Finance Minister Kyriakos Pierrakakis, centre, stands between Deputy Prime Minister Kostis Hatzidakis, left, and Minister of Education Sofia Zacharaki, during a swearing in ceremony at the Presidential palace, in Athens, Greece, Saturday, March 15, 2025. (AP Photo/Yorgos Karahalis)

Newly appointed members of Greece's government following a reshuffle, take the oath during a swearing in ceremony at the Presidential palace, in Athens, Greece, Saturday, March 15, 2025. (AP Photo/Yorgos Karahalis)

FILE - Greece's Prime Minister Kyriakos Mitsotakis, right, speaks with National Economy and Finance Minister Kostis Hatzidakis during a parliament session in Athens, Greece, Saturday, July 8, 2023. (AP Photo/Yorgos Karahalis, File)

MELBOURNE, Australia (AP) — Aston Martin’s Fernando Alonso has hit the barriers at turn eight on lap 34 of 57, sending the safety car out for the second time in the Australian Grand Prix on Sunday.

The Melbourne race had a thrilling start with Racing Bull’s Isack Hadjar out on the formation lap, and Alpine’s Jack Doohan and Williams’ Carlos Sainz — who won here last year driving for Ferrari — crashing out on the opening lap in treacherously wet conditions at the Albert Park circuit.

McLaren’s Lando Norris still leads with more than 20 laps remaining, ahead of his teammate Oscar Piastri, and Red Bull’s Max Verstappen.

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Aston Martin driver Fernando Alonso of Spain steers his car during the Australian Formula One Grand Prix at Albert Park, in Melbourne, Australia, Sunday, March 16, 2025. (AP Photo/Scott Barbour)

McLaren driver Lando Norris of Britain leads teammate Oscar Piastri of Australia during the Australian Formula One Grand Prix at Albert Park, in Melbourne, Australia, Sunday, March 16, 2025. (AP Photo/Scott Barbour)

Williams driver Carlos Sainz of Spain's car is taken from the track after he crashed during the Australian Formula One Grand Prix at Albert Park, in Melbourne, Australia, Sunday, March 16, 2025. (AP Photo/Asanka Brendon Ratnayake)

McLaren driver Lando Norris of Britain leads the field into turn two at the start of the Australian Formula One Grand Prix at Albert Park, in Melbourne, Australia, Sunday, March 16, 2025. (AP Photo/Asanka Brendon Ratnayake)

Team RB driver Isack Hadjar of France is assisted by a track marshal after his car hit a wall on the formation lap ahead of the Australian Formula One Grand Prix at Albert Park, in Melbourne, Australia, Sunday, March 16, 2025. (AP Photo/Asanka Brendon Ratnayake)