Fitch Downgrades Greece to ‘CC’

World » SOUTHEAST EUROPE | July 1, 2015, Wednesday // 15:54| Views: | Comments: 0
Bulgaria: Fitch Downgrades Greece to ‘CC’

Fitch Ratings has downgraded Greece's long-term foreign and local currency Issuer Default Ratings by one notch to 'CC' from 'CCC'.

The issue ratings on Greece's senior unsecured foreign and local currency bonds have also been downgraded by one notch to 'CC' from 'CCC', the global ratrings agency said in a press release on Tuesday.

The Short-term foreign currency IDR has been affirmed at 'C'.

The key reason for the ratings downgrade was the breakdown of the negotiations between the Greek government and its creditors, “which has significantly increased the risk that Greece will not be able to honour its debt obligations in the coming months, including bonds held by the private sector”, Fitch said.

“We now view a default on government debt held by private creditors as probable.”

Another reason for the downgrade is the referendum called by the Greek government for 5 July on whether to accept the 25 June proposals of the creditor institutions regarding policy conditionality, Fitch said.

“Although early polls suggest a 'Yes' vote is the more likely outcome, the risk of a 'No' vote is significant. In our view, a 'No' vote would dramatically increase the risk of a Greek exit from the eurozone,” according to the rating agency.

We need your support so Novinite.com can keep delivering news and information about Bulgaria! Thank you!

Southeast Europe » Be a reporter: Write and send your article
Tags: greece, Fitch, rating, creditors, negotiations, debt, bonds, Referendum, Eurozone
Advertisement
Advertisement
Expats.bg All Are Welcome! Join Now!
Bulgaria news Novinite.com (Sofia News Agency - www.sofianewsagency.com) is unique with being a real time news provider in English that informs its readers about the latest Bulgarian news. The editorial staff also publishes a daily online newspaper "Sofia Morning News." Novinite.com (Sofia News Agency - www.sofianewsagency.com) and Sofia Morning News publish the latest economic, political and cultural news that take place in Bulgaria. Foreign media analysis on Bulgaria and World News in Brief are also part of the web site and the online newspaper. News Bulgaria