EUR/USD back below 1.3300.
Moody’s downgrades Greece’s sovereign ratings to A3 from A2; on review for further possible downgrade. Hardly a major surprise. Timing of announcement kinda classic. Moody’s says significant risk Greek debt may stabilise at more costly level than previously thought.
Greek 5-year CDS rises to record 616 bps after Moody’s announcement.
More…..
- Difficult macroeconomic and financial environment makes government programme more challenging
- Greek rating unlikely to remain at A3 unless government can restore confidence in markets
