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."
News on the cut : Bloomberg, Wall Street Journal, Forbes
More about the Troika in Greece:
The June 2011 Troika Loan Plan
"Midterm" Troika plan passes Greek Parliament - June 2011
Troika primary requirement: Reduce the size of the Greek state - Sept 2011
Questions about Troika Powers in Greece - June 2011
Related:
2011 – Creating the European Financial Stability Facility (EFSF) & the "PIIGS"
2017 – Another Greek Economic Crisis?
The Drachma almost returned to Greece 2013–2017
Greek economic Survival in the 1990s
Greece's Golden Visa program
