International rating agency Moody’s has upgraded the Greek government bonds by two notches, from C to Caa3 with a stable rating outlook.In its announcement Moody’s said that the upgrade reflects three key factors: the significant fiscal consolidation that has taken place under Greece's structural adjustment programme, the improvement in Greece's medium-term economic outlook and the significant reduction of the government's interest burden following previous restructurings and official sector repayment assistance. Moody’s expects that the Greek government will achieve (and possibly outperform) its target of a primary balance in 2013, and record a surplus in 2014 in accordance with the adjustment programme.

The key drivers combined reduce the likelihood of further Private Sector Involvement (PSI) being undertaken as a condition for further financing. Concurrently, Moody's has also raised the local and foreign-currency ceiling of Greece to B3 from Caa2.

See also: Moody’s: Ratings Symbols & Definition