Just as it appeared that Greece could not be downgraded any further, Fitch warned that it may take down the debt of the nearly dead sovereign paper another notch.
“Fitch Ratings has today placed Greece’s ‘BBB-‘ Long term foreign and local currency Issuer Default Ratings (IDR) on Rating Watch Negative (RWN) pending the outcome of a rating review which is now in progress.
A RWN indicates that there is a heightened chance that Greece’s sovereign ratings will be downgraded.
The review, which is expected to be completed during January 2011, will focus on an assessment of Greece’s fiscal sustainability in the wake of the measures that the authorities have taken this year under the IMF-EU bailout. It will also focus on the outlook for the Greek economy and the political will of Greece to carry the measures required by the IMF and EU.
Douglas A. McIntyre