LONDON Feb 10 An impasse between the
International Monetary Fund and euro zone member states on Greek
bailout talks is "credit negative" for Greece, ratings agency
Greek Finance Minister Euclid Tsakalotos was scheduled to
meet European officials in Brussels on Friday in an attempt to
break a logjam in the bailout talks, state television reported.
"The impasse between the IMF and the euro area member states
that are Greece's main creditors is credit negative for the
sovereign because it raises the likelihood of one or more
unfavourable outcomes," said Kathrin Muehlbronner, Senior Vice
President at Moody's Investors Service.
In a note, dated Feb. 9, the ratings agency said the impasse
had a number of risks for Greece such as putting pressure on the
government to deliver more measures than originally envisaged.
It added that the risks of early elections was rising given
the political cost to the government and its slim majority in
Moody's added that there was also an increased risk that
Greece's debt programme will have to be renegotiated after
German elections in September.
The agency rates Greece Caa3 with a stable outlook.
It said its note on Greece was an update to the markets and
did not constitute a rating action.
(Reporting by Dhara Ranasinghe, editing by Nigel Stephenson)