International rating agency Standard & Poor’s increased Greece’s credit rating to speculative grade lower on Wednesday after Athens ended the largest debt restructuring in the financial history, Reuters reported.
“While the replacement, in our opinion, relieves pressure on short-term financing, the burden of government debt of Greece remains high,” warned S & P, while enhancing the credit rating for the new Greek bonds to CCC, with a stable outlook.
The rating of short-term bonds is higher than the C SD (selective default). The outlook remains stable.
The agency warned that the recession and the election on May 6, hide and risks of tax adjustment needed to reduce further the debt of Greece.
“The ratings could be reduced if we see that the likelihood of difficulty of replacing the rest of the debt securities of Greece,” said a statement from the agency.
Fitch assigned a B rating speculative Greece in mid-March, becoming the first major rating agency, which raised the rating of the country of selective default, after the agreement to reduce debt restructuring Athens around 100 billion euros, or about 1 / 3.
After raising the long-term Greek credit rating to a level B of “restricted default” in March, Fitch noted that “the private sector and official sector provided an opportunity for Greece, but this will require internal challenges such as depreciation for successful program with weak prospects for sustainable economic recovery before 2014. “