S&P cuts Greece credit rating to selective default

Oh boy.

It's Official: S&P Cuts Greece To (Selective) Default From CC

Greece Ratings Lowered To 'SD’ (Selective Default)

Rating Action

On Feb. 27, 2012, Standard & Poor's Ratings Services lowered its 'CC' long-term and 'C' short-term sovereign credit ratings on the Hellenic Republic (Greece) to 'SD' (selective default).

Our recovery rating of '4' on Greece's foreign-currency issue ratings is unchanged. Our country transfer and convertibility (T&C) assessment for Greece, as for all other eurozone members, remains 'AAA'.

Rationale

We lowered our sovereign credit ratings on Greece to 'SD' following the Greek government's retroactive insertion of collective action clauses (CACs) in the documentation of certain series of its sovereign debt on Feb. 23, 2012. The effect of a CAC is to bind all bondholders of a particular series to amended bond payment terms in the event that a predefined quorum of creditors has agreed to do so. In our opinion, Greece's retroactive insertion of CACs materially changes the original terms of the affected debt and constitutes the launch of what we consider to be a distressed debt restructuring. Under our criteria, either condition is grounds for us to lower our sovereign credit rating on Greece to 'SD' and our ratings on the affected debt issues to 'D'.

Selective default is ``good`` (yeah right) compared to outright default since it doesn't trigger CDS apparently. But selective default will turn into outright default if the Greek investors don't accept the haircut.

It's about to go boooooooooom in Europe.

Time to start a distraction (war).

It just seems as though the past couple of days bring us more and more signs of the coming world.

All the tension in financial world, political world, and real world are clashing into some sort of snowball effect and we all know where things like go.

reply to post by Vitchilo


It seemed like it all started when things got hot in Egypt...
and now, all I want to know is where will I go when the S hits the F.

Greek austerity measures = America raising it's debt ceiling.
What happens in Greece will probably happen in Europe.

Originally posted by sykonot
It just seems as though the past couple of days bring us more and more signs of the coming world.

All the tension in financial world, political world, and real world are clashing into some sort of snowball effect and we all know where things like go.

Good point. It's no mere coincidence that we see a massive financial and economic crisis threatening to topple the world into recession or even collapse together with the uprisings in the Middle East and again, threatening major war across the region there.

Have a look at this thread. Yeah the guy might be a fruit loop, but he offers a reasonable analysis in simple terms for the average person to understand:

www.abovetopsecret.com...

Actually nobody really cares about S&P, Moody's etc. ratings..

I doubt Downgrades really matter its the same crap over and over again. I bet you futher down grade USA to a B- we still give $100 Billion to NATO, SPEND SPEND SPEND it will never end