Standard and Poor΄s does not think that a Greek debt default in the near term and a breakup of the euro zone are inevitable, a senior official of the ratings agency said on Wednesday, Reuters reports.
David Beers, head of sovereign ratings, told a Reuters Investment Summit in London that the EU/IMF rescue funds for Greece had bought the country time to convince markets it was cleaning up its act.
“There΄s nothing particularly inevitable about Greece defaulting in the near term,” Beers said, pointing to the EU/IMF rescue package.
“So Greece has the space and time to show the market and also its own people … that it is implementing a (fiscal) plan.”
Beers added that S&P was not as pessimistic about the euro zone as some in the market.
“We are at this delicate period where it΄s very easy to be hugely pessimistic and of course if S&P shared that degree of pessimism our ratings of the euro zone would be uniformly much lower than they are right now.”
It is noted that S&P in the end of April had downgraded Greek debt to junk status.
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