Moody’s Investor Services downgraded Greece to Caa1 from B1 and raised the prospect of a default to an even 50 percent. The European Union is currently working on a second bailout plan that may include debt re-profiling where investors are asked to reinvest in new Greek debt when existing bonds mature.
Ã¢â‚¬Å“Taken together, these risks imply at least an even chance of default over the rating horizon,Ã¢â‚¬Â MoodyÃ¢â‚¬â„¢s said in a statement. Ã¢â‚¬Å“Over five-year investment horizons, around 50 percent of Caa1-rated sovereigns, non-financial corporate and financial institutions have consistently met their debt-service requirements. Around 50 percent have defaulted.Ã¢â‚¬Â
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