S&P says likely to declare Greece in default

NEW YORK Tue Jan 24, 2012 4:55pm EST

A man walks in front of a cafe at Plaka tourist district in Athens January 24, 2012.  REUTERS/John Kolesidis

A man walks in front of a cafe at Plaka tourist district in Athens January 24, 2012.

Credit: Reuters/John Kolesidis

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NEW YORK (Reuters) - Standard & Poor's will likely downgrade Greece's ratings to "selective default" when the country concludes its debt restructuring, but that will not necessarily destroy the credibility of the European Union, an official with the ratings agency said on Tuesday.

"It's not a given that Greece's default would have a domino effect in the euro zone," John Chambers, the chairman of S&P's sovereign rating committee, said in an event organized by Blooomberg Link.

(Reporting By Walter Brandimarte, Daniel Bases and Steven C. Johnson)

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Comments (4)
Intriped wrote:
Yep, we knew somebody would do this. Kinda like a sibling that has a parent for a co-signer on a loan and he defaults. The sibling’s credit is devastated while the parent’s credit is marginalized and they have to cover the debt.

Jan 24, 2012 10:39am EST  --  Report as abuse
aratosm wrote:
Why is S&P still in business?

Jan 24, 2012 10:48am EST  --  Report as abuse
Harry079 wrote:

When someone co-signs for a loan they are responsible from day one on that loan. The credit of the co-signer is used to obtain the loan and if payments are made on time the applicant can then use that history to obtain future credit based on the history of that loan.

Jan 24, 2012 10:52am EST  --  Report as abuse
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