Standard & Poor΄s Ratings Services said it keeps Greece and Portugal on watch for possible credit downgrades, underscoring the continuing difficulties facing fiscally strapped governments in the European debt crisis.
Regarding Greece, it remains "uncertain about the ultimate nature, and impact, of the proposed key features of the European Stability Mechanism", said S&P in a press release.
S&P said that it would be unlikely to cut the debt ratings of Greece and Portugal by more than two notches. It downgraded Portugal΄s long-term debt to A- in November and has had Greece on a BB+ rating since December.
"We have kept the long-term rating on Greece on CreditWatch with negative implications because we remain uncertain about the ultimate nature, and impact, of the proposed key features of the permanent crisis resolution mechanism, the European Stability Mechanism (ESM), as these are yet to be decided by Eurozone policymakers," noted Standard & Poor΄s credit analyst Marko Mrsnik.
"We expect that by late March 2011, European policymakers will have decided on the key features of the ESM and we expect the ESM will be operational by mid-2013", he added.
S&P aims to resolve Greece΄s status within two months after analyzing the final details of the planned ESM and assessing its implications for non-official holders of sovereign debt.
Regarding Greece, it remains "uncertain about the ultimate nature, and impact, of the proposed key features of the European Stability Mechanism", said S&P in a press release.
S&P said that it would be unlikely to cut the debt ratings of Greece and Portugal by more than two notches. It downgraded Portugal΄s long-term debt to A- in November and has had Greece on a BB+ rating since December.
"We have kept the long-term rating on Greece on CreditWatch with negative implications because we remain uncertain about the ultimate nature, and impact, of the proposed key features of the permanent crisis resolution mechanism, the European Stability Mechanism (ESM), as these are yet to be decided by Eurozone policymakers," noted Standard & Poor΄s credit analyst Marko Mrsnik.
"We expect that by late March 2011, European policymakers will have decided on the key features of the ESM and we expect the ESM will be operational by mid-2013", he added.
S&P aims to resolve Greece΄s status within two months after analyzing the final details of the planned ESM and assessing its implications for non-official holders of sovereign debt.
