Fitch downgraded Greece by cutting Greece’s credit rating

Fitch, the major ratings agency downgraded Greece after it cut Greece’s credit rating by three notches from BB+ to B+. It further warned of more downgrades if the EU and the IMF do not bother to produce a credible plan for the debt stricken nation. Fitch also warned that a move made to extend the maturities of Greece bonds will be considered as default event. So, any debt profiling/restructuring would thereby result in a default. European Central Bank Executive Board member, Juergen Stark stated in an interview that the idea of restructuring of debt by Greece cannot be considered as a solution to its problems. According to Stark, a debt restructuring would invite enormous problems. With a debt restructuring or re-profiling, Greece is likely to face a situation where it will not be able to gain access to the markets over a reasonable time span. However, if it is regained due to re-profiling or restructuring, Greece will have to pay higher risk premium in the near future. ..... Read More