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Moody's: impasse on bailout raises risks for Greece
February 10, 2017 / 9:16 AM / 10 months ago

Moody's: impasse on bailout raises risks for Greece

LONDON, Feb 10 (Reuters) - An impasse between the International Monetary Fund and euro zone member states on Greek bailout talks is “credit negative” for Greece, ratings agency Moody’s said.

Greek Finance Minister Euclid Tsakalotos was scheduled to meet European officials in Brussels on Friday in an attempt to break a logjam in the bailout talks, state television reported.

“The impasse between the IMF and the euro area member states that are Greece’s main creditors is credit negative for the sovereign because it raises the likelihood of one or more unfavourable outcomes,” said Kathrin Muehlbronner, Senior Vice President at Moody’s Investors Service.

In a note, dated Feb. 9, the ratings agency said the impasse had a number of risks for Greece such as putting pressure on the government to deliver more measures than originally envisaged.

It added that the risks of early elections was rising given the political cost to the government and its slim majority in parliament.

Moody’s added that there was also an increased risk that Greece’s debt programme will have to be renegotiated after German elections in September.

The agency rates Greece Caa3 with a stable outlook.

It said its note on Greece was an update to the markets and did not constitute a rating action. (Reporting by Dhara Ranasinghe, editing by Nigel Stephenson)

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