NEW YORK (Commodity Online): Standard&Poor's believes that the Greek default is very imminent. The S&P had last week downgraded 9 Eurozone nations including France, Spain and Italy. In fact, Italy's credit rating was downgraded from A to BBB+
In an interview with Bloomberg, Moritz Kraemer of S&P says that the ratings agency expects Greece to default “very shorty”
On Monday, S&P had lowered the credit rating of the European Financial Stability Fund (EFSF) one notch from AAA to AA+.
“We consider that credit enhancements that would offset what we view as the now-reduced creditworthiness of the EFSF’s guarantors and securities backing the EFSF’s issues are currently not in place. We have therefore lowered to AA+ the issuer credit rating of the EFSF, as well as the issue ratings on its long-term debt securities”, as per a statement released by the ratings agency.
In the aftermath of the downgrade, several European leaders had reiterated that the EFSF has sufficient funding.
