Greece credit rating upgraded by S&P amid reforms

Standard and Poor's on Friday upgraded Greece's credit rating to "B-" from "CCC+" with a stable outlook, citing its progress in cutting costs and recapitalizing banks.

Greece is "broadly complying" with the terms of its 86 billion euro (roughly $92 billion) bailout deal financed by euro zone states, opening the possibility for broader debt relief, the ratings agency said. It noted that Greece's economy has "proved more resilient" than expected.

An EU and a Greek flag wave in front of the ancient temple of Parthenon atop the Acropolis hill in Athens.

Aris Messinis | AFP | Getty Images

A possible agreement on pension reform later this year increases the chances of more relief, S&P said. It projects mostly flat growth for the Greek economy this year, followed by a "more robust" recovery.

Last year, Greece accepted the terms of the new bailout deal, which included austerity measures, after voters had rejected it in a referendum. The left-wing Syriza government, elected earlier in 2015, had campaigned against additional spending cuts.