S&P downgrades Greek credit rating
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Standard & Poor’s has downgraded the credit rating for Greece, citing concerns that the country will have to restructure its private sector debts.
The ratings agency has downgraded Greece from B to CCC, stating that any such restructuring would be considered a default.
Last week saw Greece pass two austerity votes that allowed them to implement cuts of £25bn. The move ensured the country received the latest instalment in its austerity package from the IMF.
German and French banks have already agreed to plans to roll over loans to Greece to allow it more time to repay its debts. The move could see the reinvesting of the proceeds of maturing Greek debt placed in newly issued bonds.
S&P said that it viewed “certain types of debt exchanges and similar restructurings as equivalent to a payment default”.
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