ATHENS – Greece’s center-right government on Saturday welcomed a credit rating upgrade by Moody’s, the last major ratings agency to lift junk status on government bonds that began 15 years ago during a severe debt crisis.

“(This) upgrade marks the closing of a great cycle for the Greek economy and certifies the country’s return to European normality,” Finance Minister Kostis Hatzidakis said, describing the action as “a success not only of the government, but of all Greeks.”

Moody’s announced the upgrade to Baa3 from Ba1 late Friday. It cited public finances that “have improved more quickly than we had expected” as a key factor in its decision.

The agency highlighted the government’s policy stance, institutional improvements and stable political environment, saying it expects Greece to “continue to run substantial primary surpluses which will steadily decrease its high debt burden.”

Although ratings agencies began returning Greece to investment grade in late 2023, the good news was met with relief by a government that has been hammered for weeks by strikes and protests over its handing of a deadly rail disaster two years ago.

Hatzidakis made the remarks hours before handing over the portfolio to Cabinet colleague Kyriakos Pierrakakis at a swearing-in ceremony later Saturday, a day after the government announced a reshuffle.

“Moody’s upgrade of Greece to Baa3 marks the final step in restoring our investment grade by all major rating agencies, highlighting Greece’s significant progress,” Prime Minister Kyriakos Mitsotakis said in an online post Saturday.

“We remain fully committed to reforms that attract investment, create jobs, and drive sustainable growth,” he said.

Greece spiraled into crisis in 2010 and received three international bailouts to avoid bankruptcy and repair its public finances through successive and grueling austerity programs imposed by European Union lenders and the International Monetary Fund.

National debt as a percentage of gross domestic product peaked in 2020, rising above 200%, but has been steadily falling since and is expected to drop below 150% this year, according to Greek central bank projections.

Moody’s praised the government’s ongoing debt reduction efforts.

“Over a number of years, the Greek public finances have outperformed our baseline expectations, which increases our confidence that Greek debt will remain on a firm downward path,” it said.

“These improvements are due to both ongoing expenditure restraint and tax revenues that are rising quickly in light of ongoing institutional improvements in tax compliance and collection.”