Friday, December 3, 2010

S&P warns it may downgrade Greece in 3 months

NEW YORK: Standard & Poor's on Thursday, Nov 2 said it could cut Greece's BB-plus credit rating if it becomes clear that the proposed European Stability Mechanism (ESM) will favor public creditors to the detriment of private bond holders.

Greece, as a potential recipient of ESM funding, could have its ratings negativelly affected, S&P said, echoing a similar warning it issued earlier this week regarding Portugal's ratings.

A decision on whether to downgrade Greece will be made in the next three months, according to S&P. - Reuters


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