Statement by the President of the Eurogroup on S&P lowering Greek ratings to SD

27 February 2012

The President of the Eurogroup took note of the decision by S&P to lower Greece ratings to SD (Selective Default), as a result of Greece having introduced legislation retrofitting Collective Action Clauses to certain types of Greek government bonds.

"This or possible similar rating decisions by credit rating agencies have been duly anticipated and taken into account in the planning of the PSI operation.

More specifically, following the Eurogroup meeting of 20 February 2012, euro area Member States are in the process of carrying out the relevant national procedures that allow i.a. the provision by the EFSF of a buy back scheme (collateral enhancement), allowing for the eligibility of marketable Instruments issued or guaranteed by the Greek Government for use as collateral in Eurosystem monetary policy operations for the period of the SD ratings.

I look forward to a high participation of private creditors in the PSI operation and take note of S&P’s intention to upgrade the lower ratings following the settlement of the bond exchange."

Press release

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