tagged: David Riley
, Finance Ministry
, Fitch rating agency
, George Papaconstantinou
, Greek banks downgrade
, Greek FinMin
, new downgrade warning
Posted by keeptalkinggreece in Economy
This post can be also called “The daily Fitch warning” as it is the third warning to Greece on further downgrading within a single week!
Fitch Ratings said on Friday that there is a continuing risk that euro-region nations will have their credit ratings downgraded, according to Bloomberg.
David Riley, head of sovereign ratings at Fitch said that while the risk of a break-up of the euro area remains “small,” there will be periodic episodes of market turmoil in the region until fiscal consolidation is secured and the economic recovery is broad-based.
Regarding Greece, an absence of economic recovery in the second half of 2011 and new official lending if markets stay closed may trigger a rating downgrade, Riley stressed at a conference.
He expects that Greece will require more external funding, Riley said, adding “If they don’t regain access to the market by the end of 2011 then their rating will come down further in the absence of additional funding from the EU/IMF”.
Read about Fitch’s view on Portugal and Spain in Capital.gr