The rating agency Moody’s lowered the rating of Greece, Wednesday, April 29, partly because of uncertainty over an agreement with its creditors that would allow it to to meet its obligations on its debt
Read (subscribers edition). The discussions between Athens and its creditors stalled
This note is now Caa2 be even lower in the category of bonds with very high credit risk but still above what would constitute a default.
“fragile national political environment”
The decision follows a review that began last February after the accession to power of the radical left Syriza party. Since the negotiations between Greece and the IMF, the ECB and the European Union on a program of reforms stalled.
Moody’s cited “high risks to the point of whether the Greek government will reach an agreement with its official creditors in time to meet its repayments on its debt “.
The New York agency also relies on the risks that would remain if agreement on the financial perspectives of the country because “the weakening economy and the fragile domestic political environment” .
The rating could fall further
Greece is currently negotiating a reform program that would allow him to get the latest tranche of € 7.2 billion on the program that granted him its partners European and International.
But the discussions are difficult and the Greek procrastination cause impatience. The outlook from Moody’s rating remains negative to that is to say, it could still fall further if the situation did not unblock.
Read also the platform of Finance Minister: “A New Deal for Greece,” by Yanis Varoufakis
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