February 27, 2012
Greek credit rating cut to "Selective Default" by Standard and Poor's
Last week Fitch downgraded Greece to "C" and Moody's announced a cut coming which will place Greece to the credit agencies lowest rating. The S&P rating moves Greece to "D".
The reasoning given for the Standard and Poor's action is the result of the use of 'collective action' which is meant to force investors holding Greek paper into the "haircut" which is a central element of the recently negotiated Trioka-led agreement. S&P will be rating the new Greek exchange bonds as "Double-C."
More about the Troika in Greece:
"Midterm" Troika plan passes Greek Parliament - June 2011
Questions about Troika Powers in Greece - June 2011