Mixed sig­nals from agen­cies on Greece plans

Kathimerini English - - Business & Finance -

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.

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