The latest setback for Greece: MSCI Inc. booted the euro-zone member from its index of developed countries.
The decision, announced late Tuesday, is the first time the index provider demoted a country from its "developed" to its "emerging-market" category since the launch of its flagship emerging-markets index in 1987.
It affirms what investors have believed for years. Multiple bailouts by the European Union and the International Monetary Fund, a sharp contraction in gross domestic product and a still-large debt burden mean Greece now has more in common with Hungary than France….
Greece has been an emerging market before. MSCI had Greece categorized as an emerging market until May 2001, when it was reclassified as a developed market shortly after adopting the euro.
Other countries saw promotions on Tuesday. Qatar and United Arab Emirates were moved to emerging-market status from the frontier category.
Greece Ousted from Index of 'Developed' Countries [WSJ]
Greece Cut to Emerging Market at MSCI in World First [Bloomberg]
For Greece, a Dubious Distinction [NYT Economix blog]
Money Flows Out of Emerging Markets [WSJ]