Greece Cut Four Steps to Junk by Moody's on Economic 'Risks'
2010-06-14 17:51:34.243 GMT
By Ben Martin
June 14 (Bloomberg) -- Greece's credit rating was cut four
steps to non-investment grade, or junk, by Moody's Investors
Service, which cited the country's economic "risks."
The rating was lowered to Ba1 from A3, Moody's said in a
statement today from London. The outlook is stable, it said.
Greece is already rated junk by Standard & Poor's.
The European Union last month announced a rescue package of
almost $1 trillion, with support from the International Monetary
Fund, to shore up the finances of the region's weakest economies
amid concern that governments will struggle to narrow their
budget deficits.
"It's a significant downgrade," said Kevin Flanagan, a
Purchase, New York-based fixed-income strategist for Morgan
Stanley Smith Barney. "It's not a surprise to people, but the
timing and magnitude is what has taken Treasuries off the lows
and is providing some support."
The yield on the 10-year Treasury note rose six basis
points to 3.30 percent, after rising to 3.33 percent.
"The Ba1 rating reflects our analysis of the balance of
the strengths and risks associated with the euro-zone-IMF
support package," Sarah Carlson, vice president-senior analyst
in Moody's sovereign risk group, said in the statement.
S&P cut Greece's credit rating to non-investment grade on
April 27, the first time a euro member lost its investment-grade
since the euro's 1999 debut. S&P warned that bondholders could
recover as little as 30 percent of their initial investment if
the country restructures its debt.
For Related News and Information:
Top stories: TOP <GO>
Bond yield forecasts: BYFC <GO>
Greek debt crisis: EXT3 <GO>
For new issues: NIM4 <GO>
For top bond stories TOP BON <GO>
Greek crisis special report: EXT3 <GO>
--With assistance from Benjamin Levisohn in New York. Editors:
Daniel Tilles, Dave Liedtka
To contact the reporter on this story:
Ben Martin in London +44-20-7073-3397 or
bmartin38@bloomberg.net.
To contact the editor responsible for this story:
Ben Livesey at +44-20-7673-2371 or
blivesey@bloomberg.net.
2010-06-14 17:51:34.243 GMT
By Ben Martin
June 14 (Bloomberg) -- Greece's credit rating was cut four
steps to non-investment grade, or junk, by Moody's Investors
Service, which cited the country's economic "risks."
The rating was lowered to Ba1 from A3, Moody's said in a
statement today from London. The outlook is stable, it said.
Greece is already rated junk by Standard & Poor's.
The European Union last month announced a rescue package of
almost $1 trillion, with support from the International Monetary
Fund, to shore up the finances of the region's weakest economies
amid concern that governments will struggle to narrow their
budget deficits.
"It's a significant downgrade," said Kevin Flanagan, a
Purchase, New York-based fixed-income strategist for Morgan
Stanley Smith Barney. "It's not a surprise to people, but the
timing and magnitude is what has taken Treasuries off the lows
and is providing some support."
The yield on the 10-year Treasury note rose six basis
points to 3.30 percent, after rising to 3.33 percent.
"The Ba1 rating reflects our analysis of the balance of
the strengths and risks associated with the euro-zone-IMF
support package," Sarah Carlson, vice president-senior analyst
in Moody's sovereign risk group, said in the statement.
S&P cut Greece's credit rating to non-investment grade on
April 27, the first time a euro member lost its investment-grade
since the euro's 1999 debut. S&P warned that bondholders could
recover as little as 30 percent of their initial investment if
the country restructures its debt.
For Related News and Information:
Top stories: TOP <GO>
Bond yield forecasts: BYFC <GO>
Greek debt crisis: EXT3 <GO>
For new issues: NIM4 <GO>
For top bond stories TOP BON <GO>
Greek crisis special report: EXT3 <GO>
--With assistance from Benjamin Levisohn in New York. Editors:
Daniel Tilles, Dave Liedtka
To contact the reporter on this story:
Ben Martin in London +44-20-7073-3397 or
bmartin38@bloomberg.net.
To contact the editor responsible for this story:
Ben Livesey at +44-20-7673-2371 or
blivesey@bloomberg.net.
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