S&P puts Greece on negative watch after election

Standard & Poor’s said it placed the B long-term and B short-term sovereign credit ratings on the Hellenic Republic (Greece) on CreditWatch with negative implications.

As defined in the European Union regulations, the ratings on Greece are subject to certain publication restrictions.

Under these regulations, deviations from the announced calendar are allowed only in limited circumstances and must be accompanied by a detailed explanation, S&P said.

In this case, the deviation has been caused by policy uncertainty following the results of the Greek general elections held Jan. 25, the agency said.

The CreditWatch placement reflects a view that some of the economic and budgetary policies advocated by the newly elected Greek government, led by the left-wing Syriza party, are incompatible with the policy framework agreed between the previous government and official creditors, S&P said.

If the new Greek government fails to agree with official creditors on further financial support, this would further weaken Greece’s creditworthiness, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.