Rating agency FTSE Russell has upgraded the Athens Stock Exchange with the aim of returning it to the category of developed markets.
FTSE Russell is a subsidiary of the London Stock Exchange Group (LSEG) that produces, maintains, licenses, and markets stock market indices.
In a statement, the rating agency said Greece will be added to the Watch List for potential promotion from Advanced Emerging to Developed market status.
It adds that Greece meets the following requirements for attaining Developed market status within the FTSE Equity Country Classification framework:
• the twenty-two FTSE Quality of Markets criteria;
• the minimum investable market capitalization and securities count requirements, based on data as of the close on 28 June 2024, and
• has a Gross National Income (GNI) per Capita (Atlas Method) rating of ‘High’.
FTSE Russell says that Greece retains a creditworthiness rating of “speculative” based on the lowest sovereign credit risk rating assigned to Greece by the three primary credit rating agencies.
A creditworthiness rating of ‘Investment’ grade, with an outlook that is not rated as ‘negative’ is required for a reclassification to Developed market status.
Consequently -it adds- following the recommendations received from the FTSE Equity Country Classification Advisory Committee and the FTSE Russell Policy Advisory Board, the FTSE Russell Index Governance Board has determined to add Greece to the Watch List as part of the September 2024 annual review of equity markets for possible reclassification from Advanced Emerging to Developed market status within the FTSE Equity.
Greece hails upgrade of Athens Stock Exchange
The upgrading of the Athens Stock Exchange by FTSE Russell with the aim of returning it to the category of developed markets is excellent news for Greece, the Minister of National Economy and Finance Kostis Hatzidakis pointed out in a statement.
The minister emphasized that “it is a result of the positive developments in the economy, the positive prospects that are opening up but also the specific successful moves of the government in the field of privatizations.”
He also referred to “the increase in the share capital of PPC, the listing of the shares of the airport El. Venizelos in the Athens Stock Exchange, the sale of Helleniq Energy shares. And above all – due to the size and special weight of the banks in the economy – the completion of the disinvestment of the HFSF from the systemic banks and also the developments in relation to the fifth banking pillar.”
In September, Fitch Ratings upgraded the credit ratings of Greece’s four systemic banks, the National Bank of Greece, Piraeus Bank, Alpha Bank, and Eurobank. This upgrade reflects the improved assessment of Greece’s operating environment, now rated at ‘BB+’.
Hatzidakis pointed out that “the Athens Stock Exchange is heading towards joining the world’s leading capital markets. And this creates conditions for additional funds into the country, improvement of financing conditions for listed companies, productive investments and new jobs.”