Greece’s credit rating was downgraded one level by Fitch Ratings on “heightened risk” that the country will not be able to sustain its membership of the euro area after inconclusive elections left the country without a stable government.
Greece was cut to CCC from B- by Fitch, according to an e-mailed statement today in London. The country’s ceiling was revised to B-, Fitch said in the statement.
“The strong showing of ‘anti-austerity’ parties in the May 6 parliamentary elections and subsequent failure to form a government underscores the lack of public and political support for” the country’s bailout from the European Union and the International Monetary Fund, Fitch said in the statement. “In the event that new general elections scheduled for June 17 fail to produce a government with a mandate to continue with the EU-IMF program of fiscal austerity and structural reform, an exit of Greece from EMU would be probable.”
Greece swore in a caretaker prime minister, Panagiotis Pikrammenos yesterday, with the goal of steering the country to fresh elections.