Mixed signals from agencies on Greece plans
European Union policymakers would be risking a default rating for Greece if they push ahead with plans to get private investors to swap their Greek debt holdings for new bonds, Moritz Kraemer, head of the European debt evaluation team at Standard & Poor’s, said yesterday.
“The definition of default includes distressed debt exchanges that are currently being discussed in European policy circles,” he said in Athens.
On the other hand, Fitch Ratings said yesterday that it would probably keep ratings of Greek government bonds above default level if European Union leaders go ahead with plans for investors to voluntarily roll over their holdings of the country’s debt.
Fitch would lower Greece’s sovereign rating to “restricted default” under such a plan, while leaving its bonds with “a low non-investment grade probably in the region of CCC,” the company said in a statement.