Chillin' out till it needs to be funded
S&P maintained SD ratings on Greece instead of springing them back to the appropriate junk rating as they rated the new issue UK Law bonds worth $109.2 bln (53% FV) a CCC, just below Investment grade BBB- by a two notches.
I’d speculate the decision is linked to another technicality as ECB keeps holding the old Greek Law / without CACs GGBs that were issued to them as a special case, though they were also issued in exchange and will likely hold their CCC rating. A SD “rating” implies Greek continues to be in default despite having changed its entire Financial machinery that was clogging the wheels.
BTW, we agree with ISDA that their actions and that of rating agencies are for different reasons and therefore they were fine in having selected the Default event and triggerring CDS only at that time. Moodys’ and Fitch apparently are more in tune with rating countries/industries for their Credit.
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