Moody’s downgrades Greece by growing uncertainty – Investing.com Spain

By George Georgiopoulos

ATHENS (Reuters) – Moody’s lowered on Thursday the credit rating of Greece into the category of junk, because of the uncertainty about if the indebted country can achieve on time an agreement with international creditors to meet upcoming debt maturities.

Moody’s said it downgraded the sovereign rating of Greece to “Caa2″ from “Caa1″ and assigned a “negative” outlook reflects the risks to economic, financial and political balance in the country have a “downward bias”

Fitch, Standard & Dev. Poor’s and Moody’s raised the sovereign rating of Greece last year as the economy was showing tentative signs of recovery after six years of recession.

But the confrontation of the new left-wing government with its partners in the eurozone and the International Monetary Fund on the reforms needed to unlock the remaining funding has clouded the outlook, Moody’s said.

“The Greek government and its official creditors are staying away on key objectives, with no immediate prospect of it reached agreement on a new financing package, “said Moody’s.

Although the parties want a deal to avoid a Greek default and the process has taken on a new sense of urgency, the agency said it will end driven mainly by political decisions.

“The result of these decisions is highly uncertain and the potential for a political accident resulting in a default on Greece of its commercial debt, including that held by the ECB, has risen, “he said.

A rating of” Caa2 “historically has been associated with nearly one in four chance of falling into default on a horizon of two years.

Moody’s He said Greece faces serious liquidity problems impeding the government’s ability to finance its budget spending and debt payments since the bailout from the European Union and the IMF went off course last year.

He added that Athens will need to maintain a primary budget surplus for several years to try to reduce its heavy debt burden

S &. P cut the rating of Greece to “CCC +” from “B-” 15 April, citing the worsening economic conditions due to the protracted negotiations between the country and its lenders.

SALE OF PORTS

The Greek Government is considering selling its stake in the two largest ports in the country, as a concession to reach an agreement with international creditors, an official in Athens said on Wednesday.

“The negotiating team wants an agreement with creditors and are willing to sell ports Piraeus and Thessaloniki, 51 of those units, “he told reporters government official.

” This has not been decided but we could do in order to achieve an agreement, “he said.

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