Last Week S&P Downgraded Greek Debt Further into Junk

The pressure on Greece’s new government to reach a deal with bailout creditors ratcheted up Friday as Standard & Poor’s cut its credit rating on Greece further into junk status and warned of the country’s possible exit from the 19-nation eurozone.

The ratings agency lowered Greece’s long-term rating by one notch to “B-” and warned about its weak cash position. But the Greek government, barely two weeks in power, is insisting it will not give up on demands to overhaul the country’s bailout agreements and bring an end to years of austerity.

Prime Minister Alexis Tsipras met Friday with the government’s top finance officials, who said the new Greek administration would not renege on its election pledge to renegotiate the bailout deal.

“It is clear that the government will remain committed to the clear mandate it has received from voters and will not accept an extension of the dead-end and catastrophic bailout,” a senior Greek official said. The official asked not to be named as talks with European officials are ongoing.

Still, since the left-wing Syriza party swept to power in the Jan. 25 election, it has made little progress in getting Greece’s bailout creditors to agree to change course. Finance Minister Yanis Varoufakis undertook a whistle-stop tour of European capitals in an attempt to overhaul the bailout’s terms and conditions but nothing concrete has yet emerged.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza