Greece issuer default rating cut by Fitch.
- Fitch says downgrade reflects lack of market access, uncertain prospects of timely disbursement from official institutions.
- Short-term foreign currency rating downgraded to C from B
- Country ceiling revised to B- from BB
- Damage to investor, consumer and depositor confidence has almost certainly derailed Greece's incipient economic recovery
- Downgrade reflects tight liquidity conditions in domestic banking sector that have put extreme pressure on Greek government funding
- Greece's govt will survive current liquidity squeeze without running arrears of debt obligations but heightened risks have led to downgrade
- Expect government to continue to run arrears to suppliers to offset weaker than expected cash revenues and to provide room for debt servicing
All around rosy eh?