May 9, 2011 / 2:59 PM / 6 years ago

S&P expects 50-70 pct haircut on Greek govt debt

LONDON, May 9 (Reuters) - Standard and Poor’s ratings agency said on Monday that it expected a haircut of between 50 and 70 percent on Greek sovereign debt in the event of a default.

“We have a recovery rating on Greece which is 4, which implies that under a default scenario we would expect a haircut of between 50 and 70 percent,” Frank Gill, S&P senior director for European sovereign ratings said on a conference call with reporters.

Earlier, S&P cut Greece’s rating to B from BB-, dragging it further into junk territory on concerns that a debt restructuring is increasingly likely.

Reporting by the London bonds team

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