Monday May 4, 2015 Search
Weather | Athens
14o C
09o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece rating cut to selective default by S&P amid bond buyback

Greece’s credit grade was reduced to SD, or selective default, by Standard & Poor’s from CCC after the government began buying its bonds back from investors, a statement on the rating company’s website said late Wednesday.

The nation has offered 10 billion euros ($13.1 billion) to purchase debt issued earlier this year as the bailed-out country attempts to cut a debt load that may threaten future international aid. The rating was lifted to CCC from SD in May after undergoing the largest sovereign restructuring in history earlier this year.

“I don’t think the downgrade will have a big impact,” said Hajime Nagata, who helps oversee the equivalent of $125.1 billion as an investor in Tokyo at Diam Co., a unit of Dai-ichi Life Insurance Co., Japan’s second-biggest life insurer. “They have already restructured.”

Greece began repurchasing bonds maturing from 2023 to 2042 this week, offering a higher-than-planned price to increase demand for the debt-reduction measure.

The buyback “constitutes the launch of what we consider to be a distressed debt restructuring,” S&P said in its statement. “Any potential upgrade to the CCC category rating would reflect, among other factors, our view of the debt relief that is being delivered through the buy back and its contribution to putting the sovereign’s public finances on a sustainable footing.”

The SD designation “includes the completion of a distressed exchange offer, whereby one or more financial obligation is either repurchased for an amount of cash or replaced by other instruments having a total value that is less than par,” according to S&P’s website.

The purchases have helped buoy the nation’s debt. Greek bonds have returned 72 percent in the past three months, the best performance of 174 sovereign debt indexes tracked by the Federation of Financial Analysts Societies and Bloomberg.

European finance ministers last week eased the terms on emergency aid for Greece to help nurse the debt-stricken country back to health.

Euro-area finance ministers last week announced debt- reduction steps for Greece, including lower bailout loan rates and a recycling of the European Central Bank’s profits on the nation’s bonds back to the Athens treasury.

Ministers from all 27 European Union nations will return to Brussels next week to ratify Greece’s next aid payment, the fifth-straight week they’ll have descended on the Belgian capital. [Bloomberg]

ekathimerini.com , Thursday December 6, 2012 (09:59)  
Government too conscious of its image
Tenders add term for ‘other currency’
Bankers call for a quick deal to get economy back on track
Capital flight from banks, stocks, bonds
Two killed, around 20 wounded in clash between inmates
Two men were killed and at least 20 wounded in a violent clash between inmates at the Greek capital's Korydallos Prison on Sunday. According to initial reports, a group of inmates believed t...
Fugitive Xeros nabbed thanks to tip-off, paper trail suggests
Police recaptured November 17 terrorist Christodoulos Xeros in January after being tipped off by an informant, documents seen by Kathimerini suggest. According to the paper trail, a few days...
Inside News
SOCCER
Six teams to fight to avoid the last relegation spot
Panthrakikos was the biggest winner of the penultimate round of Super League games on Sunday through its victory at Veria, on the day that Olympiakos partied for its fifth consecutive title....
BASKETBALL
Olympiakos defeats Panathinaikos, Ivanovic goes
Olympiakos secured the top spot in the Basket League’s regular season through a 77-66 away win at Panathinaikos, sinking the Greens into all kinds of problems, including the sacking of its c...
Inside Sports
COMMENTARY
Wrong from the start
If the prime minister had handled negotiations with Greece’s international creditors differently from the onset I would bet that he would have achieved an excellent deal both for himself and...
EDITORIAL
Mixed signals
A decision from Greek Prime Minister Alexis Tsipras is long overdue. Caught up in the internal contradictions and disagreements of his leftist SYRIZA party, Tsipras has been unable to make a...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Six teams to fight to avoid the last relegation spot
2. Olympiakos defeats Panathinaikos, Ivanovic goes
3. Two killed, around 20 wounded in clash between inmates
4. Government too conscious of its image
5. Tenders add term for ‘other currency’
6. Bankers call for a quick deal to get economy back on track
more news
Today
This Week
1. Athens hopes for breakthrough
2. If SYRIZA misses targets it must go, says Lafazanis
3. Wrong from the start
4. Fugitive Xeros nabbed thanks to tip-off, paper trail suggests
5. Mixed signals
6. Tenders add term for ‘other currency’
Today
This Week
1. The Good, the Bad and the Ugly
2. Greece’s day of reckoning inches closer as debt payments loom
3. Greek decision to exit euro would be disastrous for Greece
4. Greece’s decade-long relationship with Merkel
5. Varoufakis attacked by anarchists while dining in Athens
6. No need to widen the rift
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.