Moody’s cut Greece’s Credit Rating Three Levels

July 25, 2011 Share Print 0

Moody’s has cut Greece’s rating, warning that a planned debt swap would constitute a default. The rating was cut another three notches from Caa1 to Ca – just two more notches shy of a default rating.

“The announced EU programme… implies that the probability of a distressed exchange, and hence a default, on Greek government bonds is virtually 100%,” the agency said.

The debt swap would increase Greece’s borrowing terms by up to 30 years.

BBC News

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Dean Popplewell

Vice-President of Market Analysis at MarketPulse

Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.