30 Apr 2015
Moody's cut Greece's credit rating
FXStreet (Mumbai) - Moody's cut Greece's credit rating on Thursday deeper into junk territory, citing uncertainty over whether cash-strapped Athens will be able to finalize a deal with its creditors in time to make high debt repayments in May.
Moody's cited key reasons for the fresh downgrade as, "high uncertainty over whether Greece's government will reach an agreement with official creditors in time to meet upcoming repayments on marketable debt."
The ratings agency also noted "significant implementation risks of a follow-up, medium-term financing program even if an agreement is reached, given the weakened economy and a fragile domestic political environment."
"The Greek government and its official creditors remain far apart on key objectives, with no immediate prospect of agreement being reached on a new financing package,"
"The outcome of these decisions is highly uncertain and the potential for a policy accident resulting in Greece defaulting on its marketable debt, including that held by the ECB, has risen."
Moody's cited key reasons for the fresh downgrade as, "high uncertainty over whether Greece's government will reach an agreement with official creditors in time to meet upcoming repayments on marketable debt."
The ratings agency also noted "significant implementation risks of a follow-up, medium-term financing program even if an agreement is reached, given the weakened economy and a fragile domestic political environment."
"The Greek government and its official creditors remain far apart on key objectives, with no immediate prospect of agreement being reached on a new financing package,"
"The outcome of these decisions is highly uncertain and the potential for a policy accident resulting in Greece defaulting on its marketable debt, including that held by the ECB, has risen."