Moody’s: Greek aid deal to have minor impact on rating
A possible Greek cash-for-reforms deal to avert a default will have limited impact on Greece’s sub-investment grade credit ratings, a senior Moody’s official said on Tuesday.
Moody’s Investor Services rates Greece at Caa2.
This reflected not only uncertainty over the negotiations but also concerns about Greece’s fundamental credit profile, said Dietmar Hornung, associate managing director at Moody’s Sovereign Risk Group.
“Our concerns about Greece go beyond the current impasse in terms of negotiations, and those concerns would remain with a deal. In this context, the impact of a deal on current ratings ought to be limited,” he told Reuters’ Global Markets Forum on the sidelines of the Euromoney Global Borrowers and Investors Conference.
He also said a potential Greek exit from the euro would have credit implications for other non-investment grade eurozone countries such as Portugal but declined to speculate how those would be reflected in ratings actions.
[Reuters]
