Thursday October 23, 2014 Search
Weather | Athens
22o C
16o 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)  
TBEX brings together 800 travel bloggers in Athens
Athens weighs its LNG and CNG options
Greece ranks among global leaders in tourism growth
Global oil price drop sends local fuel prices back to 2010 levels
Strong winds hamper sea travel
Winds reching 7 and 8 Beaufort led to disruptions in Saronic Gulf sea travel services from and to Piraeus, the Greek coast guard said on Thursday morning. Services were also disrupted on the...
Cyprus seeks EU response over Turkey´s EEZ violation
Cyprus is to raise the issue of Turkey’s violation of its exclusive economic zone (EEZ) at Thursday’s European Council meeting after Turkish Prime Minister Ahmet Davutoglu raised the specter...
Inside News
SOCCER
Roberto´s heroics make Kasami´s goal count
Pajtim Kasami’s goal and Roberto’s heroics in goal saw Olympiakos claim one of the biggest wins in its history on Wednesday downing Italian champion Juventus 1-0 to boost its chances of reac...
SOCCER
Third-division Iroditos punished heavily after fan death
Greek third division team Irodotos has been docked 15 points and ordered to play 10 matches behind closed doors following the death of an Ethnikos Piraeus supporter, the Hellenic Football Fe...
Inside Sports
COMMENTARY
Defusing a crisis
The crisis in Cyprus is escalating rapidly and defusing it is an extremely delicate and complicated procedure that will inevitably lead to losses for the weakest of the two sides. The course...
EDITORIAL
PM needs to step up
The public perception of the government is anything but good right now. The coalition is projecting an image of discord and constant disputes show that key ministers are unable to stay on th...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Strong winds hamper sea travel
2. TBEX brings together 800 travel bloggers in Athens
3. Roberto´s heroics make Kasami´s goal count
4. Athens weighs its LNG and CNG options
5. Greece ranks among global leaders in tourism growth
6. Global oil price drop sends local fuel prices back to 2010 levels
more news
Today
This Week
1. TBEX brings together 800 travel bloggers in Athens
2. Strong winds hamper sea travel
3. At least 11 banks to fail European stress tests, three in Greece, report says
4. Cyprus to block Turkey's EU talks after EEZ violation
5. EU’s Juncker wins Commission-team approval with investment vow
6. Juncker’s EU commission team set for parliamentary green light
Today
This Week
1. Coalition shooting itself in the foot
2. Istanbul skyscraper casts shadow over Greece's banking ambitions
3. Greece’s closed society is central to its current malaise
4. The past, present and future of the Greek debt crisis
5. Greece must stick to reforms, says Schaeuble
6. At least 11 banks to fail European stress tests, three in Greece, report says
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.