Fitch Rating said today that a “re-profiling” of Greek debt where investors willingly allow Greece to delay payment on maturing securities would be seen as a default by the ratings agency. This action would further reduce Greece’s credit rating as a result.
Fitch also warned that unless Congress raises the federal government’s borrowing limit by August 2nd, the government will be forced to default on an August 15th coupon payment and Fitch would place the U.S. on watch. Fitch did note however, that it expected the debt ceiling would be raised in time to avoid defaulting.
Source: Reuters
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.
Latest posts by Scott Boyd (see all)
- Japan’s Demographic Trap - 25 June 2012
- Officials Talk Openly of Greek Euro Exit - 16 May 2012
- Greek Voters Prepare to Roll the Dice - 15 May 2012