S&P cuts Greece's long-term debt rating to 'selective default'

NEW YORK Thu Dec 6, 2012 7:53am IST

The Standard and Poor's building in New York, August 2, 2011. REUTERS/Brendan McDermid

The Standard and Poor's building in New York, August 2, 2011.

Credit: Reuters/Brendan McDermid

Related Topics

Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

NEW YORK (Reuters) - Standard & Poor's on Wednesday cut Greece's sovereign long-term foreign currency credit rating to "selective default" from an already low "CCC" rating.

Last week Greece and its international lenders reached a deal to lower the country's debt burden, which included a debt buyback.

The decision to lower the sovereign rating follows the government's invitation to private sector bondholders to participate in the debt buyback "which under our criteria we view as a selective default," S&P said in an e-mailed statement.

"When the buyback is consummated (which we understand is scheduled to occur on or about December 17, 2012), we will likely consider the selective default to be cured and raise the sovereign credit rating on Greece to the 'CCC' category," the statement said.

The outlook on the rating remains negative.

Euro zone finance ministers and the International Monetary Fund reached agreement on November 26 for steps to cut Greece's public debt and help the country regain access to international financial markets.

Greece said it would spend 10 billion euros to buy back bonds at a price range that topped market expectations. The move is seen as central to put the near-bankrupt country's debt back on a sustainable footing.

The buyback will be conducted through a modified Dutch auction in which investors declare at what level they are willing to sell their bonds before Athens sets a final price. (Reporting by U.S. Treasury Desk)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

DLF Shares

DLF Shares

DLF slides 3 percent, underperforms rivals.  Full Article 

Global Economy

Global Economy

Chinese factories stalling as euro zone business picks up  Full Article 

Rupee Falls

Rupee Falls

Rupee falls for third day; foreign fund inflows key.  Full Article 

Record High

Record High

BSE Sensex hits record high for third straight day.  Full Article 

M&M Upgraded

M&M Upgraded

Credit Suisse upgrades Mahindra & Mahindra to 'outperform'  Full Article 

Breakingviews

Breakingviews

Manchester United’s crisis has silver lining  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage