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15 Apr 2015
S&P downgrades Greece to CCC+ from B-; outlook negative
FXStreet (Córdoba) - The rating agency Standard and Poor's downgraded Greece sovereign debt to CCC+ from B-, with negative outlook.
“The downgrade reflects our view that Greece's solvency hinges increasingly on favorable business, financial, and economic conditions. In our view, these conditions have worsened due to the uncertainty stemming from the prolonged negotiations between the almost three-month-old Greek government and its official creditors”, said S&P on a statement released on Wednesday.
S&P added that economic prospects could deteriorate further unless talks between Greece and its creditors conclude soon. However, in the statement, S&P noted that a ‘Grexit’ is not their base-case scenario. The negative outlook means that S&P could lower the rating on Greece within a year.
“The downgrade reflects our view that Greece's solvency hinges increasingly on favorable business, financial, and economic conditions. In our view, these conditions have worsened due to the uncertainty stemming from the prolonged negotiations between the almost three-month-old Greek government and its official creditors”, said S&P on a statement released on Wednesday.
S&P added that economic prospects could deteriorate further unless talks between Greece and its creditors conclude soon. However, in the statement, S&P noted that a ‘Grexit’ is not their base-case scenario. The negative outlook means that S&P could lower the rating on Greece within a year.