Athens - Moody cut Greece's credit rating more in junk-e-region on Monday and said that it was almost certain to beat a standard tag on its debts because of a new EU bailout.
It was the second rating agency to a default after euro zone leaders warn banks agreed last week that the private sector share of the burden of rescue business shoulder would, the Greece it provides more cash and easier credit conditions of water to keep and avoid further infection.
"The announced EU programme with the Institute of international finance statement implies that the probability of one tormented Exchange and thus by default on Greek Government bonds is virtually 100 percent," Moody's said in a statement.
Bank lobby IIF, the private sector negotiations, 90 percent investor participation in the bond Exchange will attract plan new 109 billion euro bailout coming across the EU.
Moody's cut is Greece of three notches, CA, just a notch above implies review according to the expected loss of proposed debt exchanges by default.
Greece now has the lowest rating of each country in the world covered by Moody's, Fitch said last week that it would reconsider Greece review after the debt swap is completed.
"Once the distressed Exchange is complete, Moody's will consider Greece rating to ensure that they risk of the country's new credit profile, including the potential for further debt restructuring, is equivalent to", it was said.
However pledged during Fitch, a higher, fast "low speculative grade" Greece be after its bonds had been exchanged, said Moody's it could predict if the assessment would change or like.
"There is, how fast the debt Exchange, takes place", says Alastair Wilson Moody's Managing Director for EMEA, credit policy. "Once we and transparency about, who we will quickly review the credit profile." Whether that will change review, which is another question, "he told Reuters."
A senior EU official said on Saturday, the goal was to start to close a voluntary private of Greek bond swap end of August and early September.
Greek bank stocks and the broader stock market was unimpressed by Moody's action. Analysts said that the downgrade and the default warning and less disturbing following assurances on the part of the EU deal would be listed.
"The Council last week effectively Greek banks continue to access to ECB liquidity, even in the event that PSI (participation of the private sector) solves a selective standard secured", said Plato of Monokroussos, an economist at EFG Eurobank.
The Government has criticized repeatedly reviews companies for their downgrades and their spokesman threatened on Monday to end his subscriptions to these agencies, as the new rescue package for years issuing new bonds means Greece.
"All Governments figures a subscription for such agencies." I think we need no longer not the reviews. "No practical value have, said Elias Mosialos radio-9.""Perhaps the Ministry of finance should terminate its subscription."
CONTAGION CONTAINED... FOR NOW
Moody's said that there is the possibility of a second standard account would during check of social Greek rating.
"Our experience is that relatively small restructuring were often followed by lower standards", said Wilson, adding that he could not say if this would be the case for Greece.
The rescue package for Greece from other countries in the euro zone risks with short-term infection, but it was not necessarily positive in the longer term as it is a for the participation of the private sector offers, rescue precedent, said Moody's.
"The support package sets a precedent for future restructuring the finances of an other sovereign of the euro area as the Greece should be a problem." Therefore likely credit-neutral is the impact at the Thursday announcement for creditors of Ireland and Portugal, "it said.
The cost for the insurance the peripheral euro zone debt against default rose on Monday on the market doubts that the fresh aid package for Greece agreed that last week major economies protect from infection.
Standard & poor's and Fitch rate Greece CCC, largely in line with Moody's rating. S & P has not yet said how the impact of EU Summit deal Greece rating.
Copyright 2011 Thomson Reuters.
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