Moody's threatens to downgrade Greece
[WASHINGTON] Moody's placed Greece's credit rating on review for a downgrade Friday, citing "high uncertainty" about the country's talks with creditors.
"There is considerable uncertainty regarding the outcome of the ensuing negotiations, and the ability of the two sides to reach an agreement which secures Greece's financing position," said Moody's, which currently holds a deep junk-level rating of Caa1 on Greece's government bonds.
"If the Greek government is unable to secure an agreement with official creditors in the next few weeks, the probability of default on debt issued to the private sector would rise sharply."
The Moody's warning came as Greece and its key creditors in Europe appeared still far apart over Athens's demands to renegotiate its 240-billion-euro (S$367.4 billion) bailout with the European Union and the International Monetary Fund.
The EU portion of the program is due to expire on February 28, leaving just weeks for Athens and Brussels to reach a compromise or risk a default that could send Greece crashing out of the euro.
AFP
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Sunak says UK to raise defence spending amid global threats
China’s central bank hints it may add treasury bond trades to policy toolkit
US business activity cools in April; inflation measures mixed
India’s inflation at risk from extreme weather, geopolitical issues: central bank
Thailand to replace military-appointed Senate, reduce its powers
Bankers lose hope of London IPO revival for another year