Both Fitch and S&P have now publicly stated that Greece will default:
Rating agency Fitch said on Tuesday that Greece would default on its debt, although it said that such a default was likely to take place in an orderly manner.
“It is going to happen. Greece is insolvent so it will default,” Edward Parker, Managing Director for Fitch’s Sovereign and Supranational Group in Europe, the Middle East and Africa told Reuters on the sidelines of a conference in the Swedish capital. “So in that sense it shouldn’t be a surprise to anyone.”
The Fitch comments come after Moritz Kraemer, head of Standard & Poor’s rating agency’s European sovereign ratings unit, said on Monday Greece would default shortly on its debt obligations.
Fitch may be convinced that the default will be orderly. There is no one on earth that can know what the actual outcome will be. AIG was the very picture of strength while all the monolines were getting killed in 2008. The simple fact that a Western sovereign is defaulting will have unknown ramifications for years to come.
