Morgan Stanley Capital International (MSCI) has pushed back the upgrade of the Athens Stock Exchange (ASE) from emerging to developed market status until May 2027, delaying the long-awaited move by nine months—a development that, while significant, is not entirely unexpected. Initially, MSCI had scheduled the category change for August 2026; however, following feedback and concerns from institutional investors, it decided to postpone the implementation of the upgrade to May 2027.
Consultation and market contradictions
MSCI began the consultation process with international institutional investors on January 26, 2026, announcing its intention to proceed with upgrading the Greek stock market to developed market status. Although the majority of participants supported the proposal, there were objections regarding the timing of the upgrade. Raman Aylur Subramanian, MSCI’s head of market classification, stated that this decision reflects the progress achieved in the Greek market, which now meets European standards for developed markets.
The decision, as he noted, is the result of continuous reforms and cooperation with Greek authorities and the international investment community.
The upgrade plan and changes
The upgrade will be implemented across all MSCI indices, including standard, customized, and derivative indices, during the May 2027 index review. Once Greece is reclassified as a developed market, it will be added to the construction process of the unified Developed Europe index to determine the MSCI Greece Indexes. Existing participation rules will be applied to minimize index restructuring during the upgrade.
Simulations of the revised MSCI Europe Indexes, including Greece as a developed market, will be provided as part of each index review prior to the official implementation date in May 2027. This will help market participants prepare for the transition.
What this means for the Greek market
The delay in the upgrade is clearly unsettling for the investment community, as the change to developed market status is considered vital for confidence and the flow of capital into Greece. However, the postponement also allows for more preparation to ensure the transition is as smooth as possible and without market turbulence.
The upgrade of the Stock Exchange to a developed market remains a top priority for the Greek economy, as it unlocks new opportunities for investment and enhances Greece's standing in global indices. Currently, eight listed companies participate in the MSCI Greece index, including Alpha Bank, Eurobank, National Bank of Greece, Piraeus Bank, Jumbo, OPAP, OTE, and PPC. In the event of an upgrade, this number may be reduced to five listed companies.
Weighting
Based on MSCI estimates, Greece's weighting in the event of an upgrade would drop to 0.06%, down from the 0.57% it currently holds in the emerging markets index, as it moves to the MSCI World Index. In this scenario, the Greek market would maintain a similar or slightly higher presence compared to countries like Portugal and Austria, while beyond the core stocks, additional companies would join the small cap category.
It is recalled that within the framework of the 2025 Market Classification Review, MSCI had recognized the Greek market's progress regarding accessibility and compliance with the standards of developed European markets, as well as meeting economic development criteria. However, it still lagged in the criterion of "size and liquidity stability." Finally, it should be noted that these evaluations took place before the recent deterioration of the international climate and the decline of the Greek Stock Exchange.
The two previous upgrades
It is worth noting that other firms, such as FTSE Russell and S&P Global Ratings, have already classified Greece as a developed market. However, their influence remains smaller compared to that of MSCI.
Serious footnote
It should be noted that BN (BankingNews) had previously reported that the final upgrade date would be March or May 2027 to coincide with the 2027 elections, and not the autumn of 2026.
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