S&P places Greece on credit watch

From press release:

“LONDON (Standard & Poor’s) Dec. 7, 2009–Standard & Poor’s Ratings Services today said it had placed its ‘A-’ long-term sovereign credit rating on the Hellenic Republic (Greece) on CreditWatch with negative implications. Standard & Poor’s also placed on CreditWatch Negative its ‘A-’ senior unsecured debt rating on government-guaranteed securities of Greek banks.

“The ratings on Greece have been placed on CreditWatch negative to reflect our view that the fiscal consolidation plans outlined by the new government are unlikely to secure a sustained reduction in fiscal deficits and the public debt burden,” Standard & Poor’s Ratings Services credit analyst Marko Mrsnik said.

In the absence of further measures, we project that Greece’s general government debt burden could reach 125% of GDP in 2010–the largest among Eurozone sovereigns–and remain at that level, or move higher, over the medium term.”

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