David Beers, head of global sovereign ratings at Standard & Poor΄s, said that Greece that it is likely to be in default later this year, according to Dow Jones Newswires.
There is likely to be another restructuring, even after an agreement for debt relief and an extension of maturities of debt, he said.
That rescue package is already in danger of being undermined by a separate deal under which Finland would receive collateral in exchange for extending new loans to Greece, as other countries have asked for similar treatment, according to Beers.
Finally, he defended S&P’s decision to downgrade the U.S.΄s sovereign credit rating and said market volatility would not deter it from other rating cuts when justified.
Beers said the U.S. Treasury Department was “disingenuous” in claiming the firm made a $2 trillion miscalculation.
“There was no math error” as the Treasury Department suggested, he said, adding that the $2 trillion in question had not affected the downgrade decision as it reflected longer term calculations that were actually beyond the timeframe of its assessment.
(source: capital)
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