S&P raises Greece's credit out of default
Source: Agencies |
May 3, 2012, Thursday
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STANDARD & Poor's lifted Greece's credit grade out of default yesterday after Athens settled a debt writedown with private creditors.
It upgraded the country from selective default to 'CCC,' still in junk status, and gave it a stable outlook, which means no further ratings changes are being considered.
Athens finalized its bond swap, the largest in history, on April 25. The deal wiped 100 billion euros (US$132 billion) off Greece's debt and saw private bondholders take a cut of about 75 percent on the real value of their investment.
An integral part of the conditions for the crisis-hit country to continue receiving international rescue loans, the bond swap aims to trim Greece's debt from about 165 percent of gross domestic product last year to about 120 percent by 2020.
The finance ministry said on April 25 about 199 billion euros worth of bonds have been exchanged, out of the total 205.5 billion euros in eligible paper owned by banks, pension funds and other private bondholders.
"While the exchange has, in our view, alleviated near-term funding pressures, Greece's sovereign debt burden remains high," S&P said in a statement.
Greece has been relying on billions of euros in international rescue loans since 2010, after years of overspending and mismanagement of the finances.
It upgraded the country from selective default to 'CCC,' still in junk status, and gave it a stable outlook, which means no further ratings changes are being considered.
Athens finalized its bond swap, the largest in history, on April 25. The deal wiped 100 billion euros (US$132 billion) off Greece's debt and saw private bondholders take a cut of about 75 percent on the real value of their investment.
An integral part of the conditions for the crisis-hit country to continue receiving international rescue loans, the bond swap aims to trim Greece's debt from about 165 percent of gross domestic product last year to about 120 percent by 2020.
The finance ministry said on April 25 about 199 billion euros worth of bonds have been exchanged, out of the total 205.5 billion euros in eligible paper owned by banks, pension funds and other private bondholders.
"While the exchange has, in our view, alleviated near-term funding pressures, Greece's sovereign debt burden remains high," S&P said in a statement.
Greece has been relying on billions of euros in international rescue loans since 2010, after years of overspending and mismanagement of the finances.
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