Remember Greece? Apparently investors don’t either because Europe is doing well today despite Moody’s (NYSE:MCO) downgrading Greece’s credit rating three levels from Ba1 to B1.
Moody’s rationale focuses on ambiguity in Greece’s austerity measures, a lack of revenue sources, and the potential for lacking third-party support (EU bailouts) after 2013.
As you would guess, Greek politicians don’t agree with Moody’s. They are calling the downgrade “reckless” and using every PR measure to reduce the fallout to their credit markets. (See “Rated XXX: Are Rating Agencies Downgrades Legit or Controversial?“)
Watching Greece sink in slow motion makes me wonder why Bear Stearns and Lehman Brothers couldn’t have done the same.