Expansion, Spain
The political instability after the victory of Syriza passes bill to ráting Greece. The rating agency Standard & amp; Poor’s has downgraded Greece’s rating by one notch, sinking more in junk status.
The agency has downgraded Greece’s rating to B- from B with a negative outlook by observing that ” liquidity constraints that are weighing on Greek banks and the economy have reduced the time needed for the new government to reach an agreement “with the troika. The notes below BBB- are considered level without investment grade or junk
S & amp;. P also warned that the limited cash reserves and nearby maturities of debt held by preferential creditors limited flexibility in negotiating with the EU, IMF and ECB.
The company also sees risk in a lengthening of negotiations to reach an agreement, which could push further financial stability due to leakage deposits and a hypothetical imposition of capital controls and loss of access to funding of last resort, which could expel Greece from the monetary union.
It adds that the decision of the European Central Bank (ECB) to stop accepting as collateral debt of Greece in its liquidity operations adds uncertainty to the provision of liquidity of Greek banks, which could aggravate the flight of deposits, investment sink and weaken the enforcement of fiscal rules These aspects are already deteriorating fiscal and economic profile of the country
.
No comments:
Post a Comment