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ECB's Nowotny-Greece's rating fate unacceptable
March 2, 2010 / 4:59 PM / 8 years ago

ECB's Nowotny-Greece's rating fate unacceptable

VIENNA, March 2 (Reuters) - The current situation, where Greece’s fate depends on the decision of a single credit rating agency, is not acceptable, European Central Bank Governing Council member Ewald Nowotny said on Tuesday.

“The fate of Greece, and if you are going to be more dramatic, the fate of Europe, depends on the judgement of one rating agency. That is an unacceptable situation,” Nowotny said in a panel discussion.

ECB policymakers, including Vice-President Lucas Papademos, have said they would not change plans to tighten collateral rules at the end of this year to minimum required ‘A-’ standard.

Should rating agency Moody’s downgrade Greece into ‘B’ territory, as Fitch and S&P have already done, banks would no longer be able to exchange Greek government debt for cash in ECB refinancing operations from January 2011. (reporting by Boris Groendahl; writing by Marc Jones)

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