Financial News: Gov't strongly reacts to latest downgrade by S&P

Finance ministry on Monday strongly reacted to a decision by Standard & Poor’s to downgrade the country’s credit rating by two notches, from BB- to B.
In an announcement to the press, the ministry said the decision “comes in a period when no additional information or any decision has arrived worsening the country’s situation compared with the firm’s previous rating a month ago”.

The ministry added that “credit rating firms’ decisions should be based on facts, decisions and real assessment of the fundamentals of each economy. Their credibility is questioned when it is based on facts beyond these”.

Standard & Poor’s on Monday downgraded Greece’s credit rating to B from BB- ahead of a likely extension of the repayment period of the 110-billion-euro loan received by the EU and the IMF. The credit rating firm said that such an extension would lead creditor states to ask for a “comparable treatment” of private investors, with a relative extension of maturity period for their bonds and loans.

“Even if there was not a reduction of the nominal value of Greek bonds, such an extension is generally considered to be less favourable for private investors, compared with repayment on initial terms,” S&P said.

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