Standard & Poor's upgrades Greece's public debt rating from SD (Selective Default) to B-. The decision came after the buyback successfully completed by the Treasury of Athens, which repurchased government bonds for a nominal value of 31,9 billion from private investors, thus reducing the size of its debt by approximately 20 billion. The operation was completed thanks to funding from the EU. The outlook, according to the American agency, remains stable thanks to "the determination of the countries of the Eurozone in supporting the country".
Last week the Eurogroup, with the participation of the International Monetary Fund, gave the green light to total loans in favor of Athens for 49,1 billion. Of this sum, 34,4 billion were disbursed yesterday: 24,1 billion for the recapitalization of Greek banks and 9,3 billion to pay the state debt to the private sector of the economy. The remaining 14,7 billion will arrive, on an installment basis, by the end of the first quarter of 2013.
The S&P note also focuses on the possible trends in the Greek sovereign debt rating. It could be raised again if Athens shows the ability to follow the structural adjustment program of the economy negotiated with the EU and the IMF. A failure on this plan would result on the other hand a reduction in judgment.
