Tuesday, April 27, 2010

Poor Standards Junked Greece, Introduces dos Santos Of Portugal

As per Reuters reporting today:

ATHENS/BERLIN, April 27 (Reuters) - Rating agency Standard and Poor's slashed Greek debt to junk status on Tuesday and also downgraded Portugal, as investors worried political pressures could block a multi-billion euro bailout of Greece.

Markets in Europe and the United States tumbled in reaction to signs that the Greek debt crisis was spreading to other highly indebted states on the periphery of the euro zone.
S&P cut its rating of Greek government debt by a full three notches to BB-plus, the first level of speculative status. The outlook is negative, meaning the agency could downgrade Greece again.
For Portugal, S&P cut its rating by two notches to A-minus, saying Portuguese finances were structurally weak and the economy uncompetitive. Lisbon needs to do more than it currently plans to stabilise its finances, S&P said.

Certain spreads of benchmark bonds in Eurozone are blowing out versus Germany, click on chart to enlarge, 10 year spreads of Greece, Ireland, Portugal and Spain versus Germany.

Here you can read more In the event of Greek default ... Introducing Fernando Teixeira dos Santos, Portugal’s Finmin.

Interestingly, but Trim Deficit or Economy Will Be Hurt by Ben Bernanke came via the newswires actually before the poor standards action hit the Europe. Did he read also this on drug prescriptions?

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