Thursday, 28 July 2011

Greece Will Default on Debt After EU Plan: S&P

http://www.bloomberg.com/news/2011-07-27/greece-will-partially-default-on-debt-after-eu-plan-takes-place-s-p-says.html

Greece will partially default on its debt once European officials push through a plan that will see bondholders foot part of the bill of a second bailout agreed to last week in Brussels, Standard & Poor’s said.

The rating company also cut its ranking for Greece to CC, two steps above default, from CCC, according to a statement published in London today. The outlook on the debt is negative.

“The proposed restructuring of Greek government debt would amount to a selective default under our rating methodology,”S&P said. “We view the proposed restructuring as a ‘distressed exchange’ because, based on public statements by European policy makers, it is likely to result in losses for commercial creditors.”



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