PARIS: Standard & Poor's on Tuesday raised Greece's credit rating by two notches to CCC+ after the debt-laden country began paying billions of euros to its creditors and reopened its banks.
While rating remains in junk territory after the rise from CCC-, S&P said the scenario of Athens defaulting on its debts was no longer inevitable in the coming year and thus the chances of Greece having to pull out of the euro were reduced, though still "high".
The announcement came after the International Monetary Fund confirmed that Greece is no longer in default on its loans after remitting about two billion euros to make up for missed loan repayments.
The payment was made possible by a 7.16-billion-euro emergency bridge loan granted to Greece on Friday by the EU so it could pay both the IMF and an additional 4.2 billion euros due to the European Central Bank on Monday.
The ratings agency said the forecast was "stable," meaning no more changes are expected imminently.
"We are raising our long-term rating on Greece to 'CCC+' from 'CCC-' based on our view that its default on its stock of commercial debt is no longer inevitable in the next six to 12 months," Standard and Poor's said.
On July 13, Greece reached a third bailout deal with its eurozone partners after Athens agreed to the kind of tough reforms he previously eschewed in return for a three-year bailout worth up to 86 billion euros.