Standard & Poor’s on Wednesday cut Greece’s sovereign long-term foreign currency credit rating to “selective default” from an already low “C” rating.
Last week Greece and its international lenders reached a deal to lower the country’s debt burden, which included a debt buyback (Reuters)
What is Selective Default:
“A “selective default” occurs when a borrower fails to pay one or more of their obligations BUT continues to meet other payment obligations.
For instance, a country may enter into “selective default” and fail to make payments on one class of obligations but continue to make good on every other debt obligation.” (investor-dictionary)
“SD, by the way, stands for Selective Default. At least the acronym is not Selective Transitory Default: that would really summarize the situation.
In other words, Greece is technically default, and why? To make sure a few hedge funds have a great year and get paid on the Greek bonds at double their cost from 4 months ago. The Greek people just get a t-shirt that says “Third Point made a killing, and all i got was this louse Selective Default.” (zerohedge)
And this at the time when they have been telling me my sacrifices have been recognised and the road ahead is full of growth and development – next wages cuts and taxes :p
Are we (partially) bankrupt with style or not?
PS when I googled images for ‘selective default’, I saw 90% pictures of Greece…