Moodys

Good Morning:

Moody’s Places Spains Aaa soverign rating on review for downgrade.

Moody’s upgrades Chile from A1 to AA3.

Moody’s downgrades Greece to BA1 from A3.

Moody states that there will be  a complete review of Greece after there details of Eurozone/IMF program are unveiled. A multi-notch credit downgrade for Greece is likely.

The question is “how many notches is a ‘multi notch decline’?” Currently Greece is 4 notches from having debt not accepted as collateral at the ECB. If multi is 2 or 3 then the debt is safe for now. If 4 notches, trouble. The other question is when will the full details be available.