S & P Moodie Double Down Greece Rating Euro Group Bright Warning Yellow Card

Greek factors once again raised market concerns. Last Friday, euro group chairman Dijsselbloem said that Greece must apply for an extension of the rescue plan by February 16th, so as to continue to maintain financial support for the euro area. In addition, S & P downgraded Greece's sovereign credit rating from B to B-, and is likely to continue to downgrade in the future. Moodie put the rating of Greek Caa1 government bonds into a downward trend.

Last Friday, the Athens composite index fell 1.97% to 803.36. Officials of the new Greek government visited Europe this week, hoping to win support for renegotiation between international creditors and debt repayment and assistance projects. Greek finance minister Vano Fa Keith has just said publicly that Greece will not accept any agreement from the euro group meeting to maintain the status of aid projects. It is hoped that the euro zone partners can provide a transitional loan for Greece to help Greece get more time to negotiate debt problems. But the chairman of the euro group, Holland finance minister Gero Davon brun, completely strangled the hope of euro zone governments to approve such short-term financing last Friday. It said on twitter that euro zone finance ministers will hold another emergency meeting in February 11th.

Last Friday (February 6th), the credit rating agency Standard & Poor's announced that it would reduce Greece's sovereign rating from B to B-.B- in the middle of the garbage zone, only 6 steps away from default. Standard and poor's said in a statement that liquidity tensions shortened the time frame for the Greek government to reach an agreement with the official creditors on a financing project. Standard & Poor's also said that Greece's long-term and short-term sovereign credit rating will continue to be retained in the negative. credit Watch list. That means Greece. credit rating It may be removed from the observation list or downregulated again during the next assessment deadline, that is, March 13th.

Last Friday (February 6th), Moodie, an international rating agency, said that the rating of Greek Caa1 government bonds would be included in the forthcoming downward trend of MCO.N. The key factor in the downgrading of Greece's outlook is that there is a high degree of uncertainty in the negotiations between the Greek government and the three troika of the European Commission, the European Central Bank and the International Monetary Fund.

Moodie said that if the Greek rating is downgraded in the future, it will be assessed. Greece The recent potential negotiations between the government and the eurozone authorities will also assess the ability of the Greek government to ensure the security of the medium-term financing capability by expanding the current EU support plan. If the Athens government fails to reach an agreement with the international creditors in time, it will consider the current Caa1 rating of Greek government bonds, but "it is very unlikely that the Greek government bond rating will be raised in a short time". It is possible to consider raising the rating once Greece's financial situation is consolidated and structural reform is implemented.

Moodie pointed out that the outcome of negotiations between Greece and its international creditors might be potentially harmful to Greece's ability to achieve financing and liquidity; once the Greek government fails to ensure that Athens will lock in with the official creditors in the coming weeks, I am afraid that Greece will suddenly increase its debt default against private creditors, and Greece will find it very difficult to meet short-term financing needs without the official creditor scheme as a guarantee.