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Fitch has confirmed the rating of Greece with a stable outlook
24 November 2014

Fitch Ratings has affirmed the long-term credit rating of Greece at the “B” level of with a stable outlook, established in the spring of this year.

The agency has improved the country's credit rating in May. This decision was motivated by the successful development of the Greek economy.

Today the forecast is confirmed, despite the contradictions between the Greek government and the "triple" of creditors on macroeconomic indicators, and in spite of the political risk - the possibility of early parliamentary elections in 1Q of 2015.

The Agency notes that the Government has reached budget targets in 2014 and held a significant fiscal adjustment. Adjusted primary surplus, projected by Fitch, will be 1.5% of GDP this year, and the budget deficit - 1.6%.

"Fitch expects that the "triple" will complete the ongoing review by the end of 2014, but there is some risk that it could be delayed until the beginning of 2015. To issue bonds worth EUR 3 billion in April, Greece increased its financial reserves, but access to the market is still not reliable,"- said the agency. Fitch believes that the medium-term financing is going to be based on agreements with the government official creditors.

"The early general elections in the first quarter of 2015 is a likely scenario, and there is a risk that the next administration will be less likely to maintain economic and fiscal reforms," – as of analysts of Fitch agency.

The most painful phase of reforms in Greece over and financing needs can be met by the end of the 2Q of 2015 without access to markets and funds of "three", the report says.

Fitch expects GDP growth in Greece at the end of 2014 by 0.5% and 2.5% in 2015. This is somewhat lower than forecast government pledged in the draft budget for 2015.

The rating agency believes that the Greek banks are well capitalized, but the quality of their assets is weak. According to the estimate of the ECB, any additional capital injections are not required, the report said.