Greece Long-Term Sovereign Credit Rating May Be Cut by S&P on EU Bailout

Greece had its ‘BB+’ long-term sovereign credit rating placed on CreditWatch with negative implications by Standard & Poor’s Ratings Services, which said it is assessing the credit implications of the proposed European Stability Mechanism that may govern EU sovereign bonds beginning in July 2013.

“Assigning ‘preferred creditor’ status to future official lending via the ESM could be detrimental to the ability of non- official holders of sovereign debt to be repaid,” S&P said in a statement.

S&P took the move as details of the plan are still emerging, it said.

To contact the editor responsible for this story: Greg Chang at gchang1@bloomberg.net

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