The Unexpected: S&P Upgrades Greece

Banking, finance, and taxes

Published: December 18, 2012 12:27 pm

Last Updated: April 28, 2020 7:33 am

We have warned over and over that the downgrade cycle has not ended for the PIIGS and in Europe. While that is a viewpoint we see as being generally true and with many challenges remaining, the rate of these downgrades and the rate of expected downgrades is getting better. Some incredible news has been released today that almost seems too good to be true: S&P RAISED GREECE’s CREDIT RATINGS!

We would caution here that this is more or less a removal of what had been considered a selective default (SD) rating. That may not be as much of an upgrade as a “true upgrade,” but the “Stable” outlook that was issued really stands out. S&P raised the nation of Greece to ‘B1/B’ from “SD” and the outlook is considered “Stable.” Now that Greece has completed its distressed debt buyback we were expecting this “SD” rating to be removed. That being said, we would have not expected anything but a “Negative” outlook.

This may not be the ultimate end of the credit rating downgrades. Still, this is a very welcome sign to see. S&P said that this reflects a view of a strong determination of the Eurozon to keep Greece in the union.

As this is not exactly a true upgrade as you might have expected historically, the move is having a limited impact on Greek shares. The ADRs for National Bank of Greece SA (NYSE: NBG) are up only 0.6% at $1.68 in New York. The Global X FTSE Greece 20 ETF (NYSEMKT: GREK) is actually down 0.7% at $16.44 on the day. Coca-Cola Hellenic Bottling Company S.A. (NYSE: CCH) has been somewhat insulated from the woes of late, and its ADRs are down 0.5% at $21.46 on the day.

Again, this is not an upgrade we would treat as a traditional upgrade. It is that “Stable” rating that really stands out.

JON C. OGG

Are You Still Paying With a Debit Card?

The average American spends $17,274 on debit cards a year, and it’s a HUGE mistake. First, debit cards don’t have the same fraud protections as credit cards. Once your money is gone, it’s gone. But more importantly you can actually get something back from this spending every time you swipe.

Issuers are handing out wild bonuses right now. With some you can earn up to 5% back on every purchase. That’s like getting a 5% discount on everything you buy!

Our top pick is kind of hard to imagine. Not only does it pay up to 5% back, it also includes a $200 cash back reward in the first six months, a 0% intro APR, and…. $0 annual fee. It’s quite literally free money for any one that uses a card regularly. Click here to learn more!

Flywheel Publishing has partnered with CardRatings to provide coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.