Moody's Flags Political Risk to Greek Economy, Warns of Downgrade if Reforms Stall

Moody's September 18 rating action highlights political stability as a key risk to Greece's positive outlook, warning that a retreat from reform commitments could downgrade the outlook to 'stable'. The agency acknowledges current political consensus on debt reduction but conditions the positive outlook on continued fiscal discipline. This signals that Greek bond spreads and market sentiment may be sensitive to political developments ahead of elections.