Wednesday, December 05, 2012 6:22 pm
S&P cuts Greece to 'selective default'
The Associated Press
Greece has announced plans to spend up to $13 billion on the buyback in a bid to bring its staggering debt load under control.
S&P says it sees the buyback as essentially a distressed debt restructuring tantamount to a default. The rating agency says it may raise its long-term credit rating on Greece back to junk-grade "CCC" once the buyback is complete.
Greece has fallen under S&P's default rating before. It returned to junk status this spring after it completed a major debt writedown with private creditors.