ECONOMY

Greece’s ratings factoring in third bailout

Greece’s bonds and credit ratings are factoring in a third bailout for the nation that analysts and investors say will require greater concessions from its international creditors.

Within a week of euro-area member states giving their formal approval to a second bailout package for Greece, the International Monetary Fund said the country may require additional funding or a further debt restructuring. Pacific Investment Management Co, which runs the world?s biggest bond fund, said it remains ?cautious? on euro-area government debt even after the largest-ever sovereign refinancing because the risk remains that Greece will leave the single-currency area.

?It?s still a very steep mountain to climb,? said Harvinder Sian, a senior fixed-income strategist at Royal Bank of Scotland Group Plc in London. The restructuring deal ?doesn?t do anything to put Greece on a sustainable path,? he said. ?A third bailout will become necessary.?

The price of Greek government bonds maturing in February 2042 that were provided as part of its debt exchange was at 21.48 cents on the euro at 8.04 a.m. London time, with yields at 15.02 percent. Standard