Some suggest that Greece’s new communist prime minister, Alexis Tsipras, is all talk, what with his desire to remain within the Eurozone and consequent complete lack of any leverage of any kind. But if he did actually do the things he’s pledged to do, namely tell Angela Merkel to give him a better bailout deal or go to hell: Well, that would not be good for Greece’s credit rating, according to Fitch, Moody’s and S&P. And Greece’s credit rating is already not very good.
Both credit raters have their ratings at B, which is five notches below investment-grade territory.
“In our opinion, if the new Greek government fails to agree with official creditors on further financial support, this would further weaken Greece’s creditworthiness….”
"If by our next review on the 15th of May there is no progress on these talks or they look to be failing, of course that would be a trigger for a downgrade," Douglas Renwick, the firm's head of western European sovereigns, said during a conference call.
S&P Puts Greece Ratings on Watch for Downgrade [WSJ]
Greece’s rating could be cut if troika talks stall – Fitch [Reuters]
Greece’s Tsipras Wants to be Chavez, But He’ll Settle for Being Lula [WSJ MoneyBeat blog]