PA5COR
12-19-2012, 09:15 AM
http://www.bbc.co.uk/news/business-20773955
Ratings agency Standard and Poor's has raised the credit rating of Greece's sovereign debt by six levels, praising the "strong determination" of fellow eurozone countries to help it stay as a member state.
S&P has increased Greece's rating from "selective default" to "B-minus".
The agency also praised the continuing efforts by Greece's government to cut its spending.
Greece is currently receiving the second of two bailouts.
S&P said in its statement: "The upgrade reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone.
"The outlook on the long-term rating is stable, balancing our view of the government's commitment to a fiscal and structural adjustment against the economic and political challenges of doing so."
The BBC's economics editor Stephanie Flanders said of S&P's announcement: "This is a significant upgrade, which the Greek government will consider a vote of confidence, but it seems to be more of a vote of confidence in the euro in general.
"Greece is not out of the woods economically, by any stretch of the imagination. But financial markets do now think a Greek exit from the euro is less likely.
"S&P is catching up with that market optimism with this upgrade. In theory, the fact that a large part of Greek sovereign debt has already been restructured also makes future defaults a bit less likely."
Ratings agency Standard and Poor's has raised the credit rating of Greece's sovereign debt by six levels, praising the "strong determination" of fellow eurozone countries to help it stay as a member state.
S&P has increased Greece's rating from "selective default" to "B-minus".
The agency also praised the continuing efforts by Greece's government to cut its spending.
Greece is currently receiving the second of two bailouts.
S&P said in its statement: "The upgrade reflects our view of the strong determination of European Economic and Monetary Union (eurozone) member states to preserve Greek membership in the eurozone.
"The outlook on the long-term rating is stable, balancing our view of the government's commitment to a fiscal and structural adjustment against the economic and political challenges of doing so."
The BBC's economics editor Stephanie Flanders said of S&P's announcement: "This is a significant upgrade, which the Greek government will consider a vote of confidence, but it seems to be more of a vote of confidence in the euro in general.
"Greece is not out of the woods economically, by any stretch of the imagination. But financial markets do now think a Greek exit from the euro is less likely.
"S&P is catching up with that market optimism with this upgrade. In theory, the fact that a large part of Greek sovereign debt has already been restructured also makes future defaults a bit less likely."