Reuters Summit-S&P does not see Greek default inevitable

(For other news from the Reuters Investment Outlook Summit,
click on
http://www.reuters.com/summit/InvestmentOutlookJun10?pid=500)

LONDON, June 9 (BestGrowthStock) – Ratings agency Standard and
Poor’s does not consider that a Greek debt default in the near
term and a breakup of the euro zone are inevitable, a senior
official said on Wednesday.

David Beers, head of sovereign ratings, told a Reuters
Investment Summit in London that a European Union and
International Monetary Fund rescue package for Greece had bought
the country time to convince markets it was sorting out its
fiscal problems.

“There’s nothing particularly inevitable about Greece
defaulting in the near term,” Beers said, pointing to the
EU/IMF rescue package.

“So Greece has the space and time to show the market and
also its own people … that it is implementing a (fiscal)
plan.”

S&P downgraded Greek debt to junk status towards the end of
April and also cut ratings for Portugal and Spain in swift moves
that weighed on the euro. (EUR=: )

Beers said S&P was not as pessimistic about the euro zone as
some in the market.

“We are at this delicate period where it’s very easy to be
hugely pessimistic and of course if S&P shared that degree of
pessimism our ratings of the euro zone would be uniformly much
lower than they are right now.”

Investment Analysis

(Reporting by Emelia Sithole-Matarise and Ian Chua; Editing
by Ruth Pitchford)

Reuters Summit-S&P does not see Greek default inevitable