Credit Guarantee downgrades Greece

Credit Guarantee has downgraded Greece’s country rating from 1B to 2C due to the mounting economic pressure facing the country, despite the initial bailout.

“The downgrading from 1-2 reflects the perceived risk of the government’s ability and willingness to implement austerity measures, while the movement from B-C concerns the country’s commercial or business-related standing,” says Theo Reddi, General Manager Exports at Credit Guarantee.

“There is considerable global concern about the other ‘PIIGS’ (Portugal, Italy, Ireland, Greece and Spain) countries and while we still continue to underwrite in these countries on open terms, future developments may affect their ratings down the line.”