Which credit rating agency would be the last to trigger a Greek default?

As you probably know, there are three major credit rating agencies namely,

·         Fitch

·         Moody and

·         Standard & Poor.

It was mentioned in a CNBC article dated July 5^th that ECB will continue to accept Greek debt unless ALL the major credit agencies declare Greece to be in default. Otherwise, I fear the worst is yet to be!

On Monday, S&P was the first credit rating agency to warn that a rollover would constitute a ‘selective default’. Fitch followed by indicating that a call to rollover as a default, too. Moody has yet to comment.

The stand is that IF only one of them does not downgrade Greece, the ECB could continue to support the banking system. IF all of them were to declare Greece to be in a credit default, which rating agency would be the third or last rating agency to put the final nail in to Greece?

What do you think?

It is very obvious that Greece will be in default and that everyone knows this. Don’t you?

It is a fact but the problem is they are telling themselves Greece is not. They are trying every way to wriggle out of this problem and avoid a credit event. As the saying goes, “you can bluff the whole world but what is it to you?”

If the above were to happen, I hope you would be following ‘this article’ as this could lead to risk off - Gold will rise and investors will fly to ‘low yield assets’ class.