Greek Credit Upgraded by Fitch

Fitch Ratings has rated the new issue Greek sovereign bonds as ‘B-’. These are the 11- and 30-year bonds that Greece issued yesterday as part of the debt swap — or private sector involvement (PSI) — exchange that cancelled about €100 billion of the country’s debt.

According to Fitch, the debt swap “cured the rating default event.” But everything’s not perfect yet:

The agency considers that significant and material default risk remains in light of the still very high level of indebtedness post-PSI and the profound economic challenges faced by Greece, as reflected in the low speculative grade rating of ‘B-‘. However, in Fitch’s view, there is a limited margin of safety for debt service on the new securities over a 12 to 24 month horizon, reflected in the Stable Outlook.

In other words, it’s your choice: green bananas or Greek bonds.

The Fitch Ratings press release is here.