S&P has just made another move downgraded Greece to CCC with negative outlook. That’s the lowest rating it can get before any restructure of debt is announced. Excerpt:
We are also of the view that risks for the implementation of Greece’s EU/IMF borrowing program are rising, given Greece’s increased financing needs and ongoing internal political disagreements surrounding the policy conditions required by Greece’s partners.
* Accordingly, we have lowered Greece’s long-term rating to ‘CCC’, while affirming its ‘C’ short-term rating and removing the ratings from CreditWatch. The outlook is negative.
Jean-Claude Trichet, the current ECB president has just admitted the budgetary planning problems in the eurozone countries in his speech in LSE. In particular:
“The existing economic governance framework has been incorrectly implemented and, more importantly, has proved to be insufficiently binding while lacking appropriate comprehensiveness.”
“As you know, we have drawn up a set of more stringent banking regulations, more ambitious capital requirements to absorb losses, improving coverage and reducing the risk of excessive borrowing. The countercyclical capital buffers are designed to reduce pro-cyclicality.”
Loading ...