Fitch ratings agency has upgraded Greece's credit grade by one notch, from CCC to B-, saying the debt-hobbled country's economy is rebalancing.

In a statement Tuesday, it says Greece has made "clear progress" toward eliminating its high budget deficit and the risk of it leaving the 17-member euro currency has receded.

Fitch noted, however, that a real economic recovery remains elusive and resistance to reform is high.

It has a stable outlook on the rating, meaning the risks of an upgrade or downgrade are balanced. The new B- rating is still in junk status.

Greece is in a sixth year of recession, largely attributable to tough cutbacks and reforms demanded by international creditors in exchange for the rescue loans that have kept the country afloat for the past three years.