S&P affirmed Greece’s BBB+ credit rating and took them off credit watch with negative implications but the outlook is negative from stable (which reflects their view of the govt’s ability to sustain reform momentum in the medium term). S&P said “we view the Greek govt’s total package of deficit reduction measures as appropriate to achieve its 2010 fiscal target, given the deterioration in Greece’s growth prospects.” They see “real GDP contracting by 4% this year.” “Despite the new measures, we think it will be difficult for Greece to comply fully with its planned consolidation path…if it does not implement additional measures in the coming years.”
One Response to “S&P affirms Greece’s BBB+ rating”
S&P is correct. Reduced deficit spending guarantees Greece’s GDP will contract, and 4% may be wildly optimistic. If Greece is forced to decrease its money supply, it will go into a depression. Today is March 16, 2010. You heard it here first.
Rodger Malcolm Mitchell