Greece stocks take another step closer to potential rating upgrade
GREECE STOCKS TAKE ANOTHER STEP CLOSER TO POTENTIAL RATING UPGRADE
MSCI came out with its annual market accessibility review on global equity markets and things are looking pretty bright for Greece.
The index provider confirmed that measures taken by the government to improve its economic fundamentals along with market reforms were bearing fruit, putting its equities market on track to achieve developed-market status.
MSCI said measures introduced by authorities to manage pooled assets and stimulate stock lending and short-selling activity were adopted and validated by market participants - key issues that the index provider had flagged, not just in its 2024 review, but also when it downgraded the market to 'emerging market' status in 2013.
In March, Moody's became the last among major credit rating agencies to lift Greece's debt rating to "investment grade", acknowledging the efforts taken to improve debt sustainability.
Athens equities (.ATG) have jumped over 100% since 2021 and has outperformed both Europe's STOXX 600 
SXXP and the broader MSCI emerging markets stocks index CBOE:EFS so far this year.
Greece has made a steady recovery from a debt crisis that started in 2009 and almost saw it drop out of the euro before an international bailout. However, as a sign of its comeback, the government has been repaying bailout loans and debt ahead of schedule.
Its banks - which had to be bailed out during the crisis - are fully privatised again and some of them have also started paying dividends.
Other index providers including S&P Dow Jones and FTSE Russell have put the Athens stock market on a watchlist for a potential upgrade to developed market status.
However, the market classification report by MSCI due on June 24 is the one that major fund managers will be keeping a keen eye on.
(Johann M Cherian)
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