By Stephen Nakrosis

Fitch Ratings on Friday said it has raised Greece's long-term foreign-currency issuer default rating to BB+ from BB, adding the country has a stable outlook.

Fitch said the upgrade reflects a number of drivers, including improved fiscal outturns, reduced banking sector risks and stable financing costs.

Fitch said it now expects "better deficit and debt outturns and projections in 2022-2024, thanks to stronger nominal growth, budget over-execution and a favourable debt-servicing structure." Fitch also said it forecast a narrowing of general government debt, from an estimated 3.8% in 2022 to 1.8% in 2024.

Headline inflation is expected to fall, from 9.3% in 2022 to 5% this year and to 1.5% in 2024, in line with easing of energy and other commodity prices as well as base effects, Fitch said. GDP growth is seen reaching 0.9% this year and 2.3% in 2024, Fitch said.

Write to Stephen Nakrosis at stephen.nakrosis@wsj.com

(END) Dow Jones Newswires

January 27, 2023 17:47 ET (22:47 GMT)