Greece Gets New Credit Ratings, Reflecting its Economic Recovery Efforts

Credit rating agencies upgraded Greece's credit ratings this month, opening the door to large foreign investment for the country that was struggling economically only a dozen years ago.

Between 2010 to 2015, Greece received three international bailouts totaling 320 billion euros (about $343 billion). The financial rescues included strict austerity measures that shrank the country's economy by 26% and left about a third of the population unemployed in 2013, according to the New York Times.

Today, however, Greece is one of Europe's fastest-growing economies. Its annual GDP growth in April was up 2.6%, while the Euro area's GDP growth rose only 0.8%, according to the International Monetary Fund.

Moody's upgraded Greece's credit rating to Ba3 on Sept. 15, from a previous rating of Ba2, although they are still just below investment grade. The new ratings will allow pension funds and investors to buy bonds issued by the country, the New York Times reported.

"The two-notch upgrade reflects Moody's view that the Greek economy, public finances, institutions, and the banking system are witnessing profound structural change that will support a continued material improvement in credit metrics and resilience to future potential shocks," the agency said in its announcement.

DBRS Morningstar also upgraded the country's credit rating, on Sept. 08, to BBB (low) from BB (high), and commended Greece's "strong commitment to the implementation of a prudent fiscal plan." The company said it might consider raising the ratings further if Greece's economic prospects continue to improve and it demonstrates fiscal responsibility.

Microsoft and Pfizer have previously announced plans to make investments in Greece. Microsoft is building a $1 billion data center near Athens, the Greek City Times reported. Pfizer is building a 650 million euro ($687 million) research hub in the country, according to the New York Times.