Third rating warning in a month
 
  Fitch says it might lower Greece ranking to junk status after January assessment; euro eases on news
   Fitch became the third major credit rating agency to put Greece on  review for a possible downgrade this month as the country’s economy  moves deeper into recession.
A downgrade by Fitch would push Greece’s ratings into junk territory, from BBB- currently, the lowest investment-grade level.
The news sent the euro lower against the US dollar on renewed concerns about the scope of the European sovereign debt crisis.
In  a statement, Fitch said yesterday it was placing Greece’s BBB-  long-term foreign and local currency issuer default ratings on rating  watch negative pending the outcome of a rating review. The negative  rating watch indicates there is a heightened probability that Greece’s  sovereign ratings will be downgraded, it said.
Fitch said the  review, expected to be completed during January, “will focus on an  assessment of Greece’s fiscal sustainability in the wake of the measures  that the authorities have taken this year under the IMF-EU program.”
In  May, Greece had to seek a 110-billion-euro bailout from the European  Union and International Monetary Fund after financial markets turned  against the country and it was no longer able to raise fresh funds at  sustainable rates of interest.
Fitch said the review would also  take into account “the outlook for the Greek economy and also the  political will and capacity of the Greek state to carry [out] the  measures required by the IMF-EU program through to a successful  conclusion.”
The BBB- rating by Fitch means it is still considered  investment grade, but this is the lowest level before it would be  regarded as “junk” – a speculative rating.
Moody’s Investors  Service and Standard & Poor’s Ratings Services both warned of  potential downgrades for Greece earlier this month, reflecting  uncertainty about the country’s ability to reduce its debt to  sustainable levels, a substantial projected budget shortfall and the  assessment of an EU treaty that would result in a permanent crisis  trigger in which the European Stability Mechanism would rank ahead of  private creditors in debt restructurings starting in 2013.
(Kathimerini.gr)
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Fitch e la Grecia ...