Moody's warns of Greece default despite debt deal.
Moody's has cut Greece's credit rating again, citing a risk of default despite a recent debt write-off deal.
Moody's cut Greece's rating to "C" from "Ca", the lowest level on its scale.
Moody's said the planned debt exchange, which involves private investors of Greek debt writing off much of the 206bn euros in Greek bonds they hold, "would constitute a distressed exchange, and hence a default".
Earlier this week the Standard & Poor's agency classified Greek debt as in "selective default".
Source: http://www.bbc.co.uk/news/business-17238523
OP: I have a real issue with these credit ratings agencies. When they got the credit crunch catastrophically wrong (they rated Lehman Brothers as AAA the day before its collapse) they absolved themselves their ignorance by saying that theirs was 'only an opinion'. So they're the financial equivalent of the bloke down the pub.
Moody's cut Greece's rating to "C" from "Ca", the lowest level on its scale.
Moody's said the planned debt exchange, which involves private investors of Greek debt writing off much of the 206bn euros in Greek bonds they hold, "would constitute a distressed exchange, and hence a default".
Earlier this week the Standard & Poor's agency classified Greek debt as in "selective default".
Source: http://www.bbc.co.uk/news/business-17238523
OP: I have a real issue with these credit ratings agencies. When they got the credit crunch catastrophically wrong (they rated Lehman Brothers as AAA the day before its collapse) they absolved themselves their ignorance by saying that theirs was 'only an opinion'. So they're the financial equivalent of the bloke down the pub.