Raters' Moves May Ease Greek Fix

Standard & Poor's and Fitch Ratings may enable European Central Bank President Jean-Claude Trichet to support a private investor rollover of Greek debt by saying a default rating would be partial and temporary. Trichet put Greece's fate in the hands of ratings companies when bank offic...

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Bibliographic Details
Published in:Treasury & risk 2011-07
Main Authors: Groendahl, Boris, Campbell, Dakin
Format: Magazinearticle
Language:English
Subjects:
Banks
Bond markets
Bond ratings
Collateral
Credit ratings
Economic impact
Economic planning
Eurozone
Government bonds
International
Ratings & rankings
Online Access:Get full text
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Summary:Standard & Poor's and Fitch Ratings may enable European Central Bank President Jean-Claude Trichet to support a private investor rollover of Greek debt by saying a default rating would be partial and temporary. Trichet put Greece's fate in the hands of ratings companies when bank officials began saying in May that the ECB, which has lent 98 billion euros ($142 billion) to Greek banks, would refuse to accept the nation's bonds as collateral if any burden sharing by private investors produced a default rating. Growing support for a rollover helped push the yield on Greece's 2-year bond down 320 basis points to 26.2 percent since June 27.
ISSN:1935-7214