S&P Places Greece on CreditWatch Alongside Ireland, Portugal
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Standard & Poor's Ratings Services placed its 'BB+' long-term sovereign debt and individual debt rating on Greece onto its CreditWatch with negative implications, due to the action on the debt and the possibility of a revision on the agency '4' recovery on the debt.
"We believe that more details about the ESM will emerge in the near future, but expect that, on balance, the ESM could have negative implications for the probability of nongovernmental holders of sovereign debt being paid in full and on time," said Standard & Poor's credit analyst Moritz Kraemer. "Before coming to that conclusion, we will analyze the particulars of the ESM that will eventually be presented to national governments or parliaments for ratification."
The agency sees Greece as a candidate for additional funding through the ESM, above the financing the country has already received from the International Monetary Fund.
"We could affirm the ratings on Greece if our current expectations about the impact of subordination and undefined restructuring triggers are not borne out by events after we have analyzed the full ESM proposal," said Kraemer. "If, on the other hand, our views are borne out, we could lower our long-term rating on Greece, probably by one, but not likely more than two notches, depending on the details of the ESM."
"We believe that more details about the ESM will emerge in the near future, but expect that, on balance, the ESM could have negative implications for the probability of nongovernmental holders of sovereign debt being paid in full and on time," said Standard & Poor's credit analyst Moritz Kraemer. "Before coming to that conclusion, we will analyze the particulars of the ESM that will eventually be presented to national governments or parliaments for ratification."
The agency sees Greece as a candidate for additional funding through the ESM, above the financing the country has already received from the International Monetary Fund.
"We could affirm the ratings on Greece if our current expectations about the impact of subordination and undefined restructuring triggers are not borne out by events after we have analyzed the full ESM proposal," said Kraemer. "If, on the other hand, our views are borne out, we could lower our long-term rating on Greece, probably by one, but not likely more than two notches, depending on the details of the ESM."
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