Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Anticipating the debate

Read more

EYE ON AFRICA

Abubakar Shekau says he is still leading Boko Haram

Read more

THE DEBATE

Peace at last? Colombia, FARC rebels sign historic peace accord (part 1)

Read more

THE DEBATE

Peace at last? Colombia, FARC rebels sign historic peace accord (part 2)

Read more

ENCORE!

Music show: Mykki Blanco, Van Morrison & The Weeknd’s duo with Daft Punk

Read more

FOCUS

FRANCE 24 exclusive: The last stand for Libya’s Oil Crescent

Read more

TALKING EUROPE

Greece’s minister of tourism: ‘Tourism is a government priority’

Read more

TALKING EUROPE

Terrorism, strike actions and migrant crisis: Is the EU becoming less attractive to tourists?

Read more

BUSINESS DAILY

Moody's cuts Turkey's credit rating to junk

Read more

Europe

S&P raises Greek rating out of default status

Text by News Wires

Latest update : 2012-05-02

Standard & Poor's agency raised Greece's credit rating out of default territory on Wednesday, following structural changes by which nation slashed its debt by one-third. The country remains in the junk category with a CCC rating.

REUTERS - Standard & Poor’s raised Greece’s credit rating out of default territory on Wednesday, as expected after Athens slashed its debt by about a third by completing the biggest sovereign debt restructuring in financial history.

But the firm kept Greece firmly in the junk category with a CCC rating and warned that a deep recession, unpredictable elections on May 6 and popular anger against austerity could threaten Athens’ efforts to put its finances back on track.

“While the exchange has, in our view, alleviated near-term funding pressures, Greece’s sovereign debt burden remains high,” S&P said in a statement, adding that it expected the debt to stay as high as 160-170 percent of GDP in the next three years.

S&P assigned Greece’s rating a stable outlook, indicating it was not planning to change the rating again soon, but it warned that risks remained.

“The ratings could be lowered if we believe that there is a likelihood of a distressed exchange on Greece’s remaining stock of commercial debt,” it said.

The three major rating firms have repeatedly slashed Greece’s rating throughout the debt crisis, cutting it to default over the debt deal in which private bondholders lost most of their investments in the country’s government bonds.

S&P had flagged as early as February that it was likely to raise Greece’s rating to the CCC category after the debt swap was completed.

Fitch assigned Greece a slightly higher B-rating in mid-March, becoming the first major rating agency to upgrade Athens’ rating after the swap cut its debt by about 100 billion euros.

Moody’s is the only one of the three major rating agencies to have kept its Greek rating unchanged at the lowest level. It has said it would revise the rating “in due course” and that any upgrade would likely be small.

 

Date created : 2012-05-02

  • GREECE

    Fitch upgrades Greek rating to B- after debt swap deal

    Read more

  • EUROZONE

    German parliament approves new bailout for Greece

    Read more

  • GREECE -- SPECIAL REPORT

    In Athens, an anarchist tradition alive and well

    Read more

COMMENT(S)