News: 2012-06-02 04:31:00 UTC+00

Greek Credit Ceiling Lowered By Moody's On Euro Exit Risk

Rating agency Moody's Investors Service on Friday downgraded the highest possible credit rating in Greece to Caa2, citing the increasing risk of an exit by the country from the euro area.

The highest rating on any Greek security is currently B1, Moody's said. It warned that if Greece exits the Euronze after this month's parliamentary elections - the likelihood of which is high - the maximum rating it would assign to Greek securities would decrease further.

The agency observed that an exit would result in large losses to investors due to re-denomination of government debt and private debt securities issued under Greek law and lead to severe disruption to the country's banking system and acute dislocations in the real economy.

However, if the "Greek" issuer is essentially a non-domestic company, has substantial assets outside the country or receives substantial support from an entity outside the country, there is a potential for exceptions whereby a security could be rated higher than Caa2, Moody's said.

Published: 2012-06-02 04:31:00 UTC+00 2 years, 6 months, 3 weeks, 10 hours, 25 min. ago
Recommend: Forex News
Russian Ruble Advances To 4-day High Against U.S. Dollar
2014-12-22 07:54:00 UTC+00 19 hours, 2 min. ago  
Views today: 756 
Dollar Stays Near 7-Year Peak Versus Yen
2014-12-22 19:58:00 UTC+00 6 hours, 58 min. ago  
Views today: 720 
Crude Oil Back Below $58 As OPEC Deflects Blame For Supply Glut
2014-12-22 13:08:00 UTC+00 13 hours, 48 min. ago  
Views today: 787 
U.S. Existing Home Sales Fall Much More Than Expected In...
2014-12-22 15:10:00 UTC+00 11 hours, 46 min. ago  
Views today: 678 
China's Csi300 Index Closes up 0.3 Pct at 3,394.48 Points
2014-12-22 07:03:00 UTC+00 19 hours, 53 min. ago  
Views today: 725 

« Back to list

Dec 23 at 2:56 UTC