Defaulting Sovereigns Risk Second Restructuring, Moody’s Says

Nations that undergo distressed debt exchanges risk defaulting a second time, Moody’s Investors Service said in a report that may presage challenges facing Greece.

Of 30 sovereign distressed exchanges since 1997, more than a third were followed by another default event, according to Moody’s. Losses to investors ranged from 5 percent to 95 percent with a mean of 47 percent, New York-based Moody’s said.