Moody's Investors Service will not issue new ‘Aaa’ ratings to Greek structured finance transactions or covered bonds until it concludes a review of these deals.
The rating agency’s action follows its downgrade of the country's government bond rating last December.
The triple-A ratings for structured finance securities appear high compared with the ‘A2’ it now assigns to Greek government bonds, Moody’s said, adding that it will review the resiliency of private sector ratings to the stress associated with government financial difficulties.
"The type of economic and financial stress that would be associated with government debt problems would somewhat weaken the credit fundamentals of even highly enhanced structured transactions," the rating agency noted.
Moody’s downgraded Greek government bond rating to ‘A2’ from ‘A1’ last December, saying the public finance situation has markedly deteriorated and is bound to remain highly challenging in the country.
The rating agency said it believes the risk of a disorderly exit of Greece from the Eurozone is negligible.