French plan gets positive signals from rating agencies
Politicians and bankers are confident a French proposal for a Greek bailout can be adopted without triggering a default or a payout in credit insurance, lifting a key hurdle to a rollover of Greek debt, sources told Reuters.
Banks have received positive signals from rating agencies that they will not call a French rollover plan for Greek debt a default, three people close to German lenders said on Wednesday.
?The whole charm of the French model is that it was worked out in a such way that it will be fine with the rating agencies,? one of the people said.
Another source said the fact the French model was developed by banks implies the rollover will be fully voluntary — a precondition for rating agencies not to declare a default.
?It is not rocket science for a lawyer to figure out that a debt exchange won’t trigger a credit event,? a derivatives expert with knowledge of the talks said.
?(The French plan) will be seen to comfortably not trigger the CDS,? he added.
However, a senior official at Standard
