Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
07 Mar 2011
London, 07 March 2011 -- Moody's Investors Service has today downgraded Greece's government
bond ratings to B1 from Ba1, and assigned a negative outlook to
the rating. The rating action completes a review that commenced
on December 16, 2010.
Moody's decision to downgrade Greece's rating is driven by
1.) The fiscal consolidation measures and structural reforms that
are needed to stabilise the country's debt metrics remain very ambitious
and are subject to significant implementation risks, despite the
progress that has been made to date.
2.) The country continues to face considerable difficulties with
3. ) There is a risk that conditions attached to continuing support
from official sources after 2013
will reflect solvency criteria that the country may not satisfy,
and result in a restructuring of existing debt. Moreover,
the risk of a post-2013 restructuring might lead the Greek authorities
and investors to participate in a voluntary distressed exchange before
The negative outlook on the B1 rating reflects Moody's view that
the country's very large debt burden and the significant implementation
risks in its structural reform package both skew risks to the downside.
Greece's country ceilings for bonds and bank deposits are unaffected
by today's rating action and remain at Aaa (in line with the Eurozone's
rating). Greece's Non Prime (NP) short-term rating
is also unaffected by this action.
Moody's recognises the very significant progress that Greece has
made in implementing a large fiscal consolidation and introducing the
legislation required to support a wide-ranging structural reform
programme. However, Moody's believes that the Greek
government still faces a very significant challenge in its continued execution
of the measures required to both increase revenue and achieve efficiency
savings as part of the austerity programme. Whether relating to
improvements in the operating efficiency of state-operated enterprises,
to the savings required in the health service or in military expenditure,
or to the implementation of deregulation measures passed by parliament,
the task facing officials and managers remains enormous. Moody's
therefore continues to see large implementation risks to the government's
reform plans and, while much of the enabling legislation has been
passed, implementation progress has not been sufficiently rapid
to mitigate the rating agency's concerns.
Secondly, government revenues have been slow to rebound, which
is in part the result of a continued weakness in tax collection mechanisms
that Moody's anticipates will improve only slowly. Moody's
has long attached great importance to the implementation of measures to
increase government revenues alongside the planned cost-cutting
measures. As previously stated, the rating agency continues
to place particular emphasis on measures to combat the endemic tax evasion
that has contributed to the deterioration in Greece's creditworthiness.
While the Greek government has made some progress with the collection
of value-added taxes (VAT), Moody's notes that progress
on income tax collection has been slower to improve -- indeed,
revenue shortfalls recorded in 2010 contributed to the upward revision
in the country's deficit projections for that year. Moreover,
Moody's expects income tax collections to be adversely affected
by significant administrative hurdles and by the inevitable resistance
to tax compliance among parts of Greek society. Legislation to
address these issues is currently before parliament, but will be
challenging to implement, both because of human resource limitations
(such as skills shortages) and because of vested interests that will be
resistant to change.
The third driver of the rating action is the lack of certainty surrounding
(i) the precise nature and conditions of support that will be available
to Greece after 2013, and (ii) its implications for bondholders.
Moody's acknowledges that the IMF and European authorities have
expressed very strong support for Greece provided that the country follows
through with this economic programme. The rating agency's
baseline assumption is that this support will continue to be forthcoming
and that the Greek authorities will continue to do their best to comply
with the conditions contained in the Memorandum of Understanding.
However, public statements by European officials have suggested
that additional liquidity support after 2013 would be conditional on a
solvency evaluation, the result of which is uncertain at this point
in time. If Greece were viewed as insolvent at this time,
there is some possibility that private creditors would be expected to
bear some losses.
Moody's also notes that discussions are reportedly underway among
Eurozone policymakers on the design of a longer-term support mechanism,
and those discussions may result in changes to the terms of credit provided
to Greece by the Troika. Although such changes may reduce the pace
and magnitude of the deterioration in Greece's debt affordability
metrics, they are unlikely to have a very large impact on the overall
debt burden, and would not therefore directly address the issues
that are of greatest concern.
MOODY'S CENTRAL SCENARIO -- AND WHAT COULD UNDERMINE IT
Moody's central scenario remains that bondholders will not bear
losses. However, the rating agency believes that the likelihood
of a default or distressed exchange has risen since its last downgrade
of the Greek government debt rating in June 2010.
Moody's does not believe that continued liquidity support by the
Troika and an event of default (including, but not limited to,
a distressed exchange via a debt buyback) are mutually exclusive.
The precise nature and conditions of future external support for Greece--
and their implications for bondholders -- are unclear, and
may remain so, even after the greater clarity on permanent crisis
resolution mechanisms is achieved. Moody's believes that,
over time, the risks surrounding the implementation of the economic
programme may grow and a solution that requires private-sector
creditors to bear losses may become more appealing. This view is
reflected in the B1 rating announced today.
Over five-year investment horizons, around 80% of
B1-rated sovereigns, non-financial corporates and
financial institutions have consistently met their debt service requirements
on a timely basis, while around 20% have defaulted.
WHAT COULD CHANGE THE RATING UP/DOWN
A further downgrade could follow if the Greek government's commitment
to the austerity programme were to appear to weaken, or if the Troika's
willingness to provide support were to start diminishing.
Conversely, an upgrade could follow if the probability of a default
event were judged to be diminishing in likelihood and the pace of fiscal
consolidation were to proceed more rapidly than Moody's currently
expects -- for example, through the receipt of large amounts
of privatisation revenues, or if positive surprises to tax receipts
were to reveal strong progress in the government's fight against
tax evasion. If the Troika were to extend long-term fiscal
support to Greece, without imposing losses on bondholders,
this could also lead to an upgrade.
PREVIOUS RATING ACTION AND METHODOLOGY
Moody's previous rating action on Greece was implemented on 16 December
2010, when the rating agency placed Greece's government bond
ratings on review for possible downgrade. Prior to that,
Moody's last rating action on Greece was taken on 14 June 2010,
when the rating agency downgraded Greece's government bond ratings
Ba1 from A3 and assigned a stable outlook.
The principal methodology used in this rating was Sovereign Bond Ratings
published in September 2008.
Information sources used to prepare the credit rating are the following:
parties involved in the ratings, parties not involved in the ratings,
and public information.
Moody's Investors Service considers the quality of information available
on the issuer or obligation satisfactory for the purposes of maintaining
a credit rating.
This rated entity participated in the credit rating process. The
rated entity or its related third party, if any, did provide
the rating committee access to the books, records and other relevant
internal documents of the rated entity.
The rating has been disclosed to the rated entity or its designated agents
and issued with no amendment resulting from that disclosure.
Moody's Investors Service may have provided Ancillary or Other Permissible
Service(s) to the rated entity or its related third parties within the
three years preceding the Credit Rating Action. Please see the
ratings disclosure page www.moodys.com/disclosures on our
website for further information.
Moody's adopts all necessary measures so that the information it uses
in assigning a credit rating is of sufficient quality and from sources
Moody's considers to be reliable including, when appropriate,
independent third-party sources. However, Moody's
is not an auditor and cannot in every instance independently verify or
validate information received in the rating process.
Please see ratings tab on the issuer/entity page on Moodys.com
for the last rating action and the rating history.
The date on which some Credit Ratings were first released goes back to
a time before Moody's Investors Service's Credit Ratings were fully digitized
and accurate data may not be available. Consequently, Moody's
Investors Service provides a date that it believes is the most reliable
and accurate based on the information that is available to it.
Please see the ratings disclosure page on our website www.moodys.com
for further information.
Please see the Credit Policy page on Moodys.com for the methodologies
used in determining ratings, further information on the meaning
of each rating category and the definition of default and recovery.
Vice President - Senior Analyst
Sovereign Risk Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
MD-CCO Pub, Proj and Infra Fin
Sovereign Risk Group
Moody's Investors Service
Moody's Investors Service Ltd.
Moody's downgrades Greece to B1 from Ba1, negative outlook
One Canada Square
London E14 5FA
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
No Related Data.
© 2020 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc. and/or their licensors and affiliates (collectively, "MOODY'S"). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND/OR ITS CREDIT RATINGS AFFILIATES ARE MOODY'S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY'S (COLLECTIVELY, "PUBLICATIONS") MAY INCLUDE SUCH CURRENT OPINIONS. MOODY'S INVESTORS SERVICE DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY'S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY'S INVESTORS SERVICE CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS ("ASSESSMENTS"), AND OTHER OPINIONS INCLUDED IN MOODY'S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY'S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY'S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY'S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY'S CREDIT RATINGS,
ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT.
MOODY'S CREDIT RATINGS,
ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY'S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided "AS IS" without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY'S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.
To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY'S.
To the extent permitted by law, MOODY'S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY'S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY'S IN ANY FORM OR MANNER WHATSOEVER.
Moody's Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody's Corporation ("MCO"), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody's Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody's Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and Moody's investors Service also maintain policies and procedures to address the independence of Moody's Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody's Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading "Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy."
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY'S affiliate, Moody's Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody's Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to "wholesale clients" within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY'S that you are, or are accessing the document as a representative of, a "wholesale client" and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to "retail clients" within the meaning of section 761G of the Corporations Act 2001. MOODY'S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. ("MJKK") is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody's Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody's SF Japan K.K. ("MSFJ") is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization ("NRSRO"). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.