30 Mar 2015
Greece downgraded to CCC from B - Fitch
FXStreet (Mumbai) - International ratings agency Fitch has lowered Greece's non-investment rating by two notches from B to CCC, citing "extreme pressure on Greek government funding."
Fitch said in a statement, "Lack of market access, uncertain prospects of timely disbursement from official institutions, and tight liquidity conditions in the domestic banking sector have put extreme pressure on Greek government funding,"
"Liquidity conditions faced by firms will have worsened substantially, in our view, due to increased government arrears to suppliers and bank funding strains."
"However, progress since then has been slow. It is unclear when the earliest disbursement could take place and what will be required for this to happen."
"We expect that the government will survive the current liquidity squeeze without running arrears on debt obligations, but ... the damage to investor, consumer, and depositor confidence has almost certainly derailed Greece's incipient economic recovery."
Fitch said in a statement, "Lack of market access, uncertain prospects of timely disbursement from official institutions, and tight liquidity conditions in the domestic banking sector have put extreme pressure on Greek government funding,"
"Liquidity conditions faced by firms will have worsened substantially, in our view, due to increased government arrears to suppliers and bank funding strains."
"However, progress since then has been slow. It is unclear when the earliest disbursement could take place and what will be required for this to happen."
"We expect that the government will survive the current liquidity squeeze without running arrears on debt obligations, but ... the damage to investor, consumer, and depositor confidence has almost certainly derailed Greece's incipient economic recovery."