΄B΄ and ΄C΄, from ΄BB-΄ and ΄B΄, respectively, according to an announcement.
Both the long- and short-term ratings remain on CreditWatch, with negative implications, while Standard & Poor΄s ΄4΄ recovery rating for Greece remains unchanged--indicating an estimated 30%-50% recovery upon default--and its ΄AAA΄ transfer and convertibility assessment for Greece, which applies to all members of the eurozone, also remains unchanged.
The downgrade reflects the agency’s view of increasing sentiment among Greece΄s key eurozone official creditors to extend the debt payment maturities of their EUR80 billion of bilateral loans pooled by the European Commission.
“As part of such an extension, we believe the eurozone creditor governments would likely seek "comparability of treatment" from commercial creditors in the form of their similarly extending bond and loan maturities”, S&P said.
The Greek Ministry of Finance responded that the downgrading of Greek Government debt by Standard and Poor’s today comes at a time when there have been no new negative developments or decisions since the last rating action by the agency just over a month ago and therefore is not justified.
"Credit rating decisions should be based on objective data, policy-makers’ announcements and realistic assessments of the conditions facing an economy. Not on market rumours and press reports", said the ministry in a statement.
"When such decisions are based simply on rumours, their validity is seriously cast in doubt", it concluded.
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