Moody’s Delays Rating Greece Credit Amid Political Turmoil



moody's

Rating agency Moody’s has postponed until August its assessment of Greece’s creditworthiness, as scheduled for Friday, citing serious risks of political instability.  

The agency noted the weakness of the coalition government may lead to early parliamentary elections within the next six months. Such a development would jeopardize the continuation of the troika aid program and reduce confidence in the Greek state both domestically and internationally.

Moody’s said that it does not have any obligation to issue to a rating action, and that the agency’s calendar is only indicative, adding that the agency is covered from yesterday’s report on the course of the Greek program and Greek economy.

It is two years since Greece’s debt restructuring, when Moody’s downgraded Greek bonds to a ‘Caa3’ rating, nine notches below investment grade, in which time its peers S&P and Fitch have both raised their ratings. Moody’s says its position on Greece was sufficiently explained in its report on Thursday, which praised the enactment of the multi-bill that ensures the continuation of the structural reforms, supporting the country’s long-term economic development.

Markets had been had been expecting an upgraded rating from Moody’s, given that Greek bonds are being warmly received by investors after a four-year hiatus.


2 COMMENTS

  1. has there been any study of the increasing ingestion of junk food as comnpared to eating reall Hellenic traditional foods???

  2. This is so typical of the country’s modern historical attempts at forward progress.

    Always such delays and setbacks are due to perennial wrangling among the political elements who never seem to want to compromise or synergize (why is it so difficult find any degree of consensus here?).

    It always seems to be “one step forward and two steps back” due mainly to this polemic phenomenon. The pattern seems to be a curse which the Greek state can not break.

    It is also the reason a comprehensive jury system of justice would never work here–can you imagine getting 12 people to agree on any litigation or felony issue? The damage from this problem can be demonstrated in so many current issues plaguing the state–like the wrangling over administrative university issues, harming only the youth who only wanted to move on with their future plans.