Fitch Downgrades Greece’s Currency Rating Outlook to Negative

Fitch international rating agency announced that it has changed the long-term foreign and local currency forecast for Greece from stable to negative.

MOSCOW, January 17 (Sputnik) – Fitch has changed the long-term foreign and local currency forecast for Greece from stable to negative, ahead of early parliamentary elections scheduled to take place in the country later this month, the international rating agency has announced in a press release.

"The current period of political uncertainty has increased the risks to Greece's creditworthiness as official financing, and any potential reopening of market access, could be delayed for some months," Fitch said in a statement, released Friday.

While the outlook for Greece's currency Issuer Default Ratings (IDR) has been downgraded, Fitch still affirmed the IDRs for long-term foreign and local currencies at "B". The short-term foreign currency IDR has also been affirmed at "B".

Fitch warned, however, that "early elections to be held on 25 January have made the direction of Greek policymaking more uncertain" and that a possible "prolonged political deadlock" in Greece "would increase the risk of financing difficulties and a return to recession".

Greece decided to hold snap parliamentary elections on January 25 after the country's parliament failed to elect a president in the third and final round of voting on December 29, 2014, and was subsequently dissolved.

According to opinion polls, the eurosceptic Syriza party will most likely win in the upcoming elections, which could result in Greece leaving the Eurozone.