Greece’s economic outlook has received twin upgrades from international credit ratings agencies Moody’s and DBRS Morningstar, helping underpin investor interest in the country’s debt and representing the latest in a series of upgrades that began last summer with Greece’s return to investment grade status.

This month, Moody’s raised its economic outlook for Greece to “positive” from “stable”, highlighting a better-than-expected economic performance due to strong commitment to fiscal discipline and reforms, and a healthier banking sector. It noted that Greece’s higher primary surpluses, combined with GDP growth, will support faster debt reduction. A week earlier, DBRS Morningstar also raised its outlook for Greece to “positive” from “stable”, likewise noting the improving banking system fundamentals, healthy primary surpluses, and strong economic growth.

Last August, Greece returned to investment grade status, marking a significant milestone in the country’s economic recovery after a major debt restructuring and years of painful economic reforms. Since then, Greece’s economy has continued to outpace the rest of the Eurozone, while the government has outperformed fiscal targets and repaid debt ahead of schedule. Next year, Greece is said to be considering the early repayment of another €8 billion of European loans stemming from the financial crisis.

The successive upgrades – with the next potentially in mid-October when Standard & Poor’s issues its review of Greece’s debt dynamics – have sparked growing interest in Greek government bonds. Earlier this month, following the twin upgrades, Greece saw strong demand with the re-opening of its June 2034 10-year bond.

The Public Debt Management Agency announced it had raised €250 million at a yield of 3.11%, compared with 3.56% at the previous auction in June. Overall, the agency received €924 million in bids, representing a coverage ratio of 3.70.