Fitch has become more optimistic about Greece's ability to pay off its debt.
Today, the ratings agency upgraded the country's long-term foreign and local currency ratings by one notch from CC to CCC.
It said the change was down to an agreement reached last week by Greece and its European creditors to release a third bailout for the troubled economy.
Last week's deal was reached relatively quickly and without the brinkmanship seen in the run-up to previous deadlines.This suggests that relations with the creditors have improved, as implied by the public statements from key players, although they remain delicate.
Fitch did acknowledge, however, that risks to the bailout's success “remain high”.
"It will take some time for trust to be restored between Greece and its creditors … Meanwhile, the political situation in Greece remains unpredictable," it said.
The final deadline for individual parliaments to approve the loan is Thursday. If it goes ahead, which is considered the likely outcome, an initial €23bn (£16bn) will be released on the same day, enabling Greece to meet its deadline for a €3.2bn repayment to the ECB.