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New Greek Bonds Rated "CCC"

Standard & Poor’s rated new Greek bonds on Thursday issued under its bond swap at “CCC”, or still vulnerable to default, and indicated it would likely assign the same rating for the country.
After the swap is completed “we will likely consider Greece’s selective default to be cured and assign a forward-looking sovereign credit rating of ‘CCC’ to Greece,” the agency said in a statement.
S&P currently has Greece rated at ‘SD’, or Selective Default, due to the bond swap in which some bondholders were forced to take part.
The operation is to help wipe some 100 billion euros off the country’s debt.
The bond swap, which is supposed to wrap up in April, was a condition for the eurozone to go ahead with a second bailout for Greece worth 130 billion euros. The swap was aimed at reducing Greek debt to a sustainable level of about 120 percent of gross domestic product (GDP) by 2020, against 160 percent before the deal.
S&P said the “CCC” rating reflects “Greece’s uncertain economic growth prospects, what we consider a weakening political consensus for ambitious and largely unpopular reforms, and the still-large external and fiscal debt burdens, even after the debt restructuring is concluded.
“The rating also reflects our view of the sizable implementation risks to the ambitious fiscal consolidation targets under the second financial assistance programme for Greece.”
(source: AFP)

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