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"We expect the agreement to pave the way for the government to
return to capital market funding on a sustained basis, a credit
positive," it said in a report.
Euro zone finance ministers agreed debt relief for Greece on
Friday, to smooth its return to market financing once it exits
its bailout in August after eight years of living mainly on
loans from the bloc.
Greece was offered a 10-year deferral and maturity extension on
a large chunk of past loans as well as 15 billion euros in new
credit.
Moody's, which rates Greece at B3 positive, said the debt relief
ensured the government would be facing "very moderate"
refinancing needs for the next 10 years.
"We consider the package a significant benchmark in Greece's
ongoing recovery from its deep government debt, economic and
banking crisis," the agency said.
But it said Greece's challenges remained significant as the
agreement required a sustained commitment to prudent fiscal
policy and a very large primary surplus for many years to come.
"Although economic growth has returned and will likely
accelerate further this year, Greece's growth outlook is rather
moderate at 2.0-2.5 percent per year at best, unless there is a
large boost to investment," Moody's said.
Debt relief has been an overarching objective of Prime Minister
Alexis Tsipras since he swept to power in 2015. Greece has debt
of almost 180 percent of gross domestic product, the highest in
the 19-country euro zone.
(Reporting by George Georgiopoulos; editing by John Stonestreet)
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