Standard & Poor's Corp. on Friday affirmed its long- and short-term
foreign and local currency sovereign credit ratings for
Greece
.
Greece
's
reduced current-account deficit, budgetary consolidation and improved
competitiveness showed the economy was rebalancing, S&P said in a statment.
"We believe euro-zone member states remain determined to preserve Greek
membership in the euro zone and we are therefore affirming our 'B-/B' sovereign
credit ratings on
Greece
.
"The outlook on the long-term rating is stable balancing our view of the
government's commitment to a fiscal and structural adjustment against the
economic and political challenges of doing so," the statement said.
S&P estimates Greek GDP will contract by about 4% in 2013 and 1% in 2014
because disposable incomes are declininbg as a result of job losses, falling
wages and budgetary consolidation. GDP will recover to grow about 1% in 2015, it said.