| Submit your comments on this article |
| Europe |
| Moody's Cuts Greece Government Ratings to Junk |
| 2010-06-15 |
| Moody's on Monday downgraded Greece government bond ratings into junk territory, citing the risks in the euro zone/IMF rescue package for the debt-laden country. Moody's cut the government bond ratings of debt-laden Greece to Ba1 Monday, moving the debt one notch into junk status. The agency downgraded the rating by four notches to Ba1, placing it one notch into junk status. The outlook is stable. The rescue package "effectively eliminates any near-term risk of a liquidity-driven default and encourages the implementation of a credible, feasible, and incentive-compatible set of structural reforms, which have a high likelihood of stabilizing debt service requirements at manageable levels," said Moody's senior analyst Sarah Carlson. "Nevertheless, the macroeconomic and implementation risks associated with the program are substantial and more consistent with a Ba1 rating," Carlson added. News of the downgrade made U.S. stocks trim some earlier gains, but declines were mostly moderate as investors seemed to take the downgrade in stride. "It has been relatively priced in the options market. This is not changing the overall scope of trading," said Steve Claussen, chief investment strategist at Optionshouse.com. Peter Boockvar, equity strategist at Miller, Tabak and Co. in New York, called the move by Moody's "well behind the curve." |
| Posted by:Fred |
| #1 Burn baby, burn! |
| Posted by: g(r)omgoru 2010-06-15 01:17 |