While Greece continues to struggle to secure a deal on it’s debt obligations, Standard & Poors today (16th April 2015) have further downgraded Greece’s long & short-term sovereign credit ratings to ‘CCC+/C’ from ‘B-/B’, citing worsening economic conditions due to prolonged negotiations between the government and creditors.
“Without deep economic reform or further relief, we expect Greece’s debt and other financial commitments will be unsustainable,” S&P said.
While Greece denies it’s about to default on it’s debt obligations, the CNBC article below looks at what a Greek default may look like…
“I think default is inevitable,” Michael Hewson, chief markets analyst at CMC Markets, told CNBC Tuesday.
“Whatever happens, even if they agree some tranche of aid for Greece, its economy is not going to achieve the rate of growth it needs to start paying down the debts. There is no prospect of Greece not defaulting, in my view, and if markets don’t realise this they’re living on another planet.” Source: CNBC
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