S&P could quickly upgrade Greece if plan seemed solid
Standard and Poor's could upgrade Greece's credit rating "pretty quickly" if a plan for a third euro zone bailout seemed solid, the rating agency's top European sovereign analyst said on Monday.
Moritz Kraemer told Reuters that although the firm's longer-term base case remained that Greece would end up leaving the euro, the deal had reduced the immediate risk of that and could lead to an upgrade from its CCC- grade in the next week or two.
"It could happen pretty quickly," Kraemer said. "If you have a solid programme that we think is conducive to bringing growth back to the economy and allowing the financial system to work again, then this is more important than the medium-term debt sustainability question."
A key issue now for Kraemer and S&P is whether the Greek government can push the deal through parliament without losing its majority, a move that would force it to either step aside or reshape.
