Moody's upgrades Athens

Moody's Investors Service said it upgraded the City of Athens' issuer rating to B1 from B3 and changed the outlook to stable from positive.

This action follows the agency's recent upgrade of the Greek government bond rating to B1 from B3, Moody's said.

The decision to upgrade Athens' by two notches reflects its close operational and financial linkages with the central government, the agency said.

The improvement in Greece's sovereign credit profile indicates a reduction in the systemic risk to which Athens is exposed, Moody's said.

The institutional linkages intensify the close ties between the two levels of government through the sovereign's ability to change the institutional framework under which Greek municipalities operate, the agency added.

Moody's also said it expects Athens to benefit from many of the conditions that factor into the improvement seen at the sovereign level, given its key role as the country's economic and financial hub.

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