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19-08-2015, 09:07 AM
(19-08-2015, 08:04 AM)greengiraffe Wrote: Rating agencies are jokes... don't they know that Greek financiers are just rolling over and kicking the can down the road...Might be that they are aware and pumping up the rating so that financial institutions can repackage certain greek debt into new instruments for retail players and other institutions.
Fitch raises Greece’s rating after new bailout deal
AFP AUGUST 19, 2015 6:56AM
Fitch Ratings has raised its credit grade for Greece by one notch to CCC, saying the new bailout deal reached with EU institutions lowered the chance of a new default.
The August 14 deal setting the framework for a third rescue program “has reduced the risk of Greece defaulting on its private sector debt obligations,” Fitch said.
At CCC, the new rating for Greece remains deep in junk-bond territory, reflecting the tenuousness of the €86 billion ($129 billion) rescue deal and the need for official debt relief to render Athens’s finances sustainable over the medium term.
“The risks to the program’s success remain high,” Fitch said in a statement. The rating agency assumed that the deal would be finalised in time for Greece to make a €3.2 billion bond repayment on August 20.
But it noted that “it will take some time for trust to be restored between Greece and its creditors, which increases the risk of delayed program reviews.”
“Meanwhile, the political situation in Greece remains unpredictable.”
Fitch also noted that the participation of the International Monetary Fund in the new program, seen as essential by the European Union creditors, is “uncertain” and tied to “significant” debt relief.
Fitch’s upgrade came as the Greek government revealed it was easing slightly the capital controls imposed on the debt-hit country by allowing individuals to transfer €500 per month abroad.
Almost all transfers from Greek bank accounts to foreign bank accounts had been banned by the capital controls introduced on June 29 to stop a panicked outflow of cash from the country’s banks.
According to the government decree published in the official journal, individuals can also send out of Greece €5000 every three months to their children who are studying in foreign countries and up to €8000 with documents proving those expenses.
At the same time, the limit on weekly cash withdrawals within Greece remains unchanged at €420.
Businesses can transfer money abroad more easily to pay for exports, but still within tight limits and with certain products given priority such as medicines, fuel and food.
The controls however have forced companies to get large bill payments to foreign suppliers approved by a government commission — a process that has slowed things down so much that some frustrated foreign companies have begun demanding payment in advance.
AFP
There was an article relating to credit agencies not being neutral party on vb a while back... Take the ratings with a pinch of salt.
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