Greece’s credit grade will remain low, probably still in “junk” status, even after its debt load is cut as part of a European plan to fight the financial crisis, Fitch ratings agency said Friday.
Fitch said Friday that the deal would result in a temporary default, as widely expected. After the private creditors have swapped their Greek bonds for new ones with a lower value, the country’s rating is likely to remain in the ‘B’ category, only a few notches up from its current CCC grade. Most B ratings are in so-called “junk” status, meaning non-investment grade.
“Greece would still have a large amount of debt outstanding, its growth prospects are weak and its willingness to implement structural reforms may dissipate,” the agency said in a report.
(source: AP)
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