In Brief
S&P keeps Greek rating steady, sees positive prospects LONDON – Credit rating agency Standard & Poor’s yesterday announced it affirmed all its ratings on Greece, including its single ‘A’ long-term and its ‘A-1’ short-term issuer credit ratings. The affirmation reflects the improved macroeconomic environment, underpinned by EMU membership since January 2001, and continued real convergence with EU average income levels. The outlook is positive. «Fiscal ratios have continued to improve in recent years,» said Standard & Poor’s credit analyst Beatriz Merino. «Moreover, the steady implementation of structural reforms, the modernization of the economy, and the moderation of wage demands have all supported economic buoyancy and robust productivity increases since the mid-1990s. Further progress on privatization and the restructuring of public enterprises, as well as a fiscal stance allowing further debt reduction, will support a rating upgrade,» Merino said. Costly shipbuilding contract is voided The contract signed in 1998 between the Strintzis passenger shipping company and Hellenic Shipyards at Skaramanga for the building of two ferries was canceled yesterday. The contract had been considered early as a loss-making proposition and contributed to the eviction of Brown and Root as the shipyard managers. The losses generated were one of the sticking points in the negotiations with prospective shipyard buyers HDW-Ferrostaal. The shipyards and Strintzis agreed yesterday that the former would pay the latter a penalty, estimated at 10 million euros. Accommodation bids The Athens 2004 Olympics organizers announced yesterday that three groups had submitted bids to manage a property rental scheme as Athens struggles to find accommodation for visitors to the 2004 Games. Athens 2004, the organizers, will eventually pick two of the three consortia to run the program. The agents will be responsible for investigating how suitable a home is and combining the accommodation with other travel arrangements and tickets for events. Organizers say at least 1,500 private homes will be used for visiting spectators, as many hotels in the capital have been reserved for officials and VIPs. The companies making up the bidding consortia – Alpha Olympic Hospitality, Hellenic Olympic Hospitality and Estia – cover a range of activities, from tourist services to real estate management. (Reuters) New manager Cement producer Heracles, 53.1 percent-owned by France’s Lafarge, said yesterday Albert Corcos will replace Jean-Charles Blatz as managing director. Corcos has been with Lafarge for 23 years and was previously managing director of Lafarge Brazil, the company said. Blatz will stay on as Heracles chairman of the board of directors. (Reuters) Tourist arrivals Data from several Greek airports in June show that tourist arrivals at most of them have slightly declined, figures released yesterday by the National Tourist Organization (GNTO) indicated. GNTO officials said that this was due to the fact that more tourists preferred to travel to Greek islands by the newer, faster ships. Authorities expect arrivals to remain steady in 2002.
