Standard & Poor’s raises Greek rating out of default

Standard & Poor’s has raised its rating on Greece from selective default to CCC, following the completion of the restructuring of the country’s distressed debt.

“The ‘CCC’ rating on Greece reflects our view of the recent reduction in government debt following the restructuring, the reduction in debt servicing costs as a result of the exchange, and the increased average maturity of the central government debt stock,” the rating agency said today in a statement.

Following the government’s commitment to undertake commercial debt restructuring to reduce its overall debt burden, Standard & Poor’s confirmed the outlook on the country remains stable with no further rating changes expected to be announced.

Fitch upgraded its rating for the country in March, while Moody’s maintains its rating on Greece unchanged at the lowest level.

On May 6, the country will be called to the polls to elect the government that will replace the current administration led by technocrat Prime Minister Lucas Papademos. Following the restructuring of its debt, Greece has fallen out of a list of the top ten riskiest sovereign credits, according to a research published by credit information specialist CMA in April.

Cyprus replaced Greece as the most risky sovereign credit in the world, with the highest probability of default, while Portugal remains in second place.

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