The Standard & amp rating agency; Poor’s raised the sovereign rating of Greece from Friday notch to B-, especially considering that the country can complete “by the end of March,” the conditions of reforms related aid plan which it signed in July.
On the day before the first anniversary of the accession to power of Alexis Tsipras, the young Greek Prime Minister radical left, the sovereign rating of Greece increases from CCC + to B -, with stable outlook.
The note had been raised in July, when Mr. Tsipras had accepted a third plan of aid to the country in five years, to the tune of 86 billion euros, with conditions of drastic reforms.
“By the end of March, despite disagreements between the government and its creditors, we believe that Greece will meet the terms (of reform) attached to the financial assistance program (…) , paving the way for talks on a formal debt relief, “says S & amp;. P
Athens hope in fact that the country’s creditors (EU and IMF) will agree to enter into negotiations its huge debt (of around 200% of GDP) if it passes the first evaluation of reforms successfully undertaken under the program.
Some, such as the pension reform currently under discussion, are particularly difficult and arouse already discontent of the population.
The rating agency also noted that Greek banks were recapitalized by the government since last summer, and that it “has implemented measures “.
Thus,” budget consolidation despite many shocks, the economy was more resilient than what we had initially expected, “concedes S & amp; P
. The stable outlook reflects S & amp;. P considers to be “balanced” risk change affecting this note
Obligations rated B are still vulnerable enough to non-payment, but it is considered that the issuer ” has the capacity to honor them. ” The CCC rated bonds are just as vulnerable to non-payment, since the issuer is “dependent” of the surrounding economic conditions to honor them.
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