Greek debt restructuring likely a default - S&P
BERLIN (Reuters) - Standard & Poor's reaffirmed a voluntary debt restructuring for Greece as currently foreseen by euro zone governments would likely be deemed a default, its head of European sovereign ratings told a German newspaper.
"Past experiences show that restructuring the debt of a country, whose creditworthiness is rated at CCC like Greece is currently, tend not to be voluntary and investors must sustain losses," Moritz Kraemer told Die Welt in an article due to be published on Tuesday.
Euro zone officials have told Reuters a second bailout plan for Greece is expected to fund Athens into late 2014 and feature up to 30 billion euros in aid from a voluntary private sector participation on the basis of the so-called "Vienna Initiative." S&P's Kraeemer said whether extending a bond's maturity voluntarily or not is of lesser importance.
"What's decisive is how does it compare to what was promised to creditors when they first invested their money," he said.
(Reporting by Christiaan Hetzner; Editing by Ron Askew)
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