Greece: Fitch confirms the rating of the country’s debt to “CCC”
Washington (awp / afp) – The Fitch rating agency maintained Friday debt rating of Greece to “CCC “asserting that the restoration of the confidence of creditors” take time “, a statement said.
The aid plan of 86 billion euros over three years granted to Greece last August” has reduced the risk that the country will default on its obligations to private creditors and supports this note, “Fitch said adding that the risk of the aid program” remained high “.
The note” CCC “is attributed to low-quality issuers with a real risk of default.
“It will take time to restore confidence between Greece and its creditors and other impasses in negotiations are possible,” added the ‘rating agency also believes that the political situation “remains unpredictable.”
The recapitalization of banks in particular is an important step “on the long road towards restoring the viability of the banking system”.
A capital requirement of € 14.4 billion has been identified which 4.4 billion must be raised by the banks themselves, said the agency stresses that Greek banks bear “an unusually volume important problem loans, which account for about 63% of the country’s GDP. “
The agency believes that the government has done most of the 49 steps required to get a payout of € 2 billion promised Strike in exchange for reforms.
Athens announced Friday a sharp contraction in GDP (-0.5%) in Q3, when the country was threatened to be pushed out of the euro by its partners.
This decline, after two quarters of growth, was anticipated by economic policymakers despite a very good tourist season. The European Commission expects a return to recession in 2015 and 2016, after a brief upturn in 2014 with growth of 0.7%.
afp / rp
(AWP / 11.16.2015 6:21)
(AWP / 11.16.2015 6:21) ->
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