Fitch Ratings affirmed Greece's Long-term foreign and local currency Issuer Default Ratings (IDR) at 'B-'.
The issue ratings on Greece's senior unsecured foreign and local currency bonds have also been affirmed at 'B-'. The outlooks on the Long-term IDRs are Stable. The Short-term foreign currency IDR has been affirmed at 'B' and the Country Ceiling upgraded to 'B+' from 'B'.
According to Fitch, Greece is on course to eliminate longstanding macroeconomic imbalances and there has been no repetition of the protracted delays in EU-IMF disbursements that marred previous years.
Fitch expects negotiations with the Troika on the fifth review of the Economic Adjustment Programme to reach a satisfactory conclusion by year-end. Near term, Greece is fully funded until February 2014, the ratings agency said.
Fitch acknowledges that there are programme funding shortfalls of 11 billion euro in 2014-15, but believes various options should be available to address these. The Greek economy's ability to adjust and recover is crucial to the restoration of sovereign creditworthiness, it said.
Recovery still hangs in the balance, Fitch concluded.