S&P

From the FT’s Brussels Blog:

Over the last 24 hours, a flurry of activity has taken place surrounding Greece’s €200bn debt restructuring, most of it expected but some of it potentially destabilising. Because the moves involve highly technical – but still significant – judgements by occasionally obscure groups, Brussels Blog thought it was time for another guide to what to watch for in the ensuing days.

The most eye-catching announcement was the one made last night by Standard & Poor’s declaring Greece to be in “selective default”. Luxembourg prime minister Jean-Claude Juncker, chair of the group of eurozone finance ministers, put out a statement saying the move was “duly anticipated” – and he’s right. S&P signalled this way back in June when the first talk of a Greek restructuring began.

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By David Oakley

A decision by ratings agency Moody’s over whether to downgrade Italy’s triple A sovereign rating is imminent. As the debacle this summer over S&P’s decision to downgrade the US illustrated, such a move could have major repercussions in the markets. So, just what is going on? How worried should we be? And might there be more downgrades to come in the eurozone?

What is Italy’s current investment rating?

Moody’s announced that it had put Italy on watch for downgrade in the middle of June. The agency gives itself a deadline of three months to make a decision, which should be in the next few days. Read more