Standard & Poor's upgrades ratings of four Greek banks

One of the three top global rating agencies, Standard & Poor's has delivered a bit of good news to Greece. After Athens relaxed the capital control it imposed last June, Standard & Poor (S&P) upgraded its ratings on four Greek banks.

S&P lifted the counterparty credit ratings of Alpha Bank A.E., Eurobank Ergasias S.A., National Bank of Greece S.A., and Piraeus Bank S.A. from selective default to CCC+. In addition to that, the agency has kept the outlook as stable indicating that there are no immediate risks of default.

The situation with Greece has improved a lot. Last month it eased the capital controls, which was imposed in June, last year. Deposits made in Greek banks domestically and from abroad can now be withdrawn without hassle. Greece has also secured bailout funding from European leaders in response to the reforms passed.

However, Greece can be said to far from economic recovery yet. The country is suffering with the highest unemployment in the Eurozone, where every one in four remains unemployed. The GDP is still contracting. In the last quarter, contraction was 0.5 percent and 1.3 percent from a year back.

While overall debt is not high compared to whole Eurozone but it’s still 177 percent of Greece’s GDP. As of now, the sentiment is in favor of the Eurozone but Greece could still find itself facing another crisis should the tide turn.

Greek 10-year yield rose recent days, more than a percent but its down from 15 percent seen last year and currently trading at 8.3 percent.