Greece Faces Downgrade to Emerging-Market Status by MSCI
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Greece’s stock market was put under review for reclassification to emerging markets by MSCI Inc., a change that would make the European Union nation the first advanced country to be cut to developing status.
The MSCI Greece Index, which includes only two companies, is “structurally no longer in line with Developed Markets size requirements,” MSCI, whose stock indexes are tracked by investors with about $7 trillion in assets, said in a statement yesterday. The index provider said it may discontinue the calculation of the MSCI Greece Index should the stock valuations keep declining.