"The CreditWatch placement reflects our view that some of the economic and budgetary policies advocated by the newly elected Greek government, led by the left-wing Syriza party, are incompatible with the policy framework agreed between the previous government and official creditors," S&P said in a press release Wednesday.
S&P warned that "if the new Greek government fails to agree with official creditors on further financial support, this would further weaken Greece's creditworthiness" and would prompt the agency to lower the country's B/B sovereign debt ratings.
- Yes, the EU fears Greece will exit the eurozone, so SYRIZA holds the cards.56.8% (715)
- I don't believe in success of this particular party, but their victory marks the revival of Greece.20.0% (251)
- No, their promises to reduce austerity are utopian and will not be accepted by the 'Troika'.14.2% (178)
- No, nothing good has ever come from radicalism.9.0% (113)
The European Union has criticized the agency for labeling Greece a risky investment, thereby driving up the cost of credits and scaring off potential investors.
Last Sunday parliamentary elections were held in Greece. Syriza secured victory in the elections and subsequently reached a coalition agreement with the right-wing Independent Greeks party.
The leader of Syriza Alexis Tsipras was sworn in as the new prime minister of Greece on Monday. Tsipras's main pledge during the election campaign was to renegotiate Greece's economic crisis bailout terms without leaving the Eurozone.