Global capital markets investors are bound to once again take a dim view of the future stability of the eurozone. S&P has warned that is may downgrade the sovereign debt of Greece.
“Standard & Poor’s Ratings Services has placed its ‘BB+’ long-term term sovereign credit rating on Greece on CreditWatch with negative implications,” the company said.
The note came with an indication that the future of Greece’s finances are co-mingled with its banks, just as has been the case in Ireland.
S&P said “We believe that this could have a negative impact on the creditworthiness of the four Greek banks and one related international  subsidiary that we rate, namely: National Bank of Greece S.A. (BB+/Negative/B)and its strategically important Bulgarian subsidiary United Bulgarian Bank A.D. (BB/Negative/B), EFG Eurobank Ergasias S.A. (BB/Negative/B), Alpha Bank A.E.  (BB/Negative/B), and Piraeus Bank S.A. (BB/Negative/B). We expect to publish a  more detailed analysis of any impact of our sovereign CreditWatch action on  the credit ratings on these banks as soon as permitted to do so under applicable EU law. The delay in our communication is to meet the requirements  of EU credit rating agency regulation.
Douglas A. McIntyre
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