Thursday, July 2, 2015

After Fitch, Moody’s lowers rating of Greece – The Tribune.fr

The rating agency Moody’s lowered the rating Wednesday of Greek debt by pointing to the “additional risk” that the planned referendum on Sunday would place on private creditors.

“The announcement of a referendum creates an additional risk, more pressing, for private creditors,” the agency said relegating the country’s rating to “Caa3 ‘, one notch of the category” imminent payment default ” .

high risk Referendum

The Greek voters are called on Sunday to approve or reject the European proposals subordinating the resumption of financial assistance to a savings plan. The ruling party Syriza calls for “non massive”.

“A victory not increase the risk of an exit from the euro zone would lead to significant losses of private creditors,” said the rating agency, whose Fitch and Standard and Poor’s rivals have also revised downward Greek note.

Another agency, Fitch had revised down note of Greece dice Tuesday the passing from “CCC” to “CC”, two notches in the rating “SD” or “selective default”

Private creditors would hold around 30 billion euros of Greek debt on a total of about 280 billion.

Agencies do appreciate that private debt

The announcement came a day after Moody’s Greek default vis-à-vis the IMF, which but did not influence his decision. Rating agencies are interested only the debt held by private investors.

However, Moody’s notes that the misadventures of Greece with the IMF illustrated both “precarious finances” and his “difficult relations” with its public creditors.

(With AFP and Reuters)

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