Fitch Upgrades Greece Credit Rating To CCC

By MarketWatchMarketWatch Pulse

Fitch Ratings on Tuesday upgraded Greece's credit rating one notch to CCC from CC, citing the finalization last week of a rescue deal between Athens and its eurozone creditors. An initial disbursement of 23 billion euros, or $25.6 billion, this week will ease the "acute liquidity strain" of recent months, covering the repayment of 3.2 billion euros of bonds held by the European Central Bank due on Thursday as well as a European Financial Stabilization Mechanism bridge loan maturing in September, the ratings firm said. "Last week's deal was reached relatively quickly and without the brinkmanship seen in the runup to previous deadlines," which suggests relations with creditors has improved, Fitch said. Greece's ruling Syriza party can rely on support from centrist parties to carry key votes in parliament but risks an internal split that could lead to snap elections before year-end, Fitch acknowledged.

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