Moody’s: Greece exit from eurozone unlikely, less risk of contagion than in 2012

The likelihood of Greece leaving the European single currency remains relatively unlikely than during the peak of the eurozone crisis and the risk of contagion to other countries is lower than in 2012, rating agency Moody’s said on Wednesday.

Greeks head to snap polls in less than two weeks. Opinion polls show a consistent lead for leftist party SYRIZA, which wants to renegotiate an international bailout and ask Europe to write off a big chunk of the country’s debt.

“The likelihood of a Greek exit is still lower than during the peak of the crisis in 2012 and remains relatively unlikely,” Moody’s said, but added the political turmoil in the country had increased the chances of such a scenario.

“This higher risk could have negative credit implications for other members of the European single currency, despite contagion risks being materially lower than at the peak of the crisis.”