Moody’s downgraded Greece’s local- and foreign-currency bond ratings by three levels to Ca, one level above default, from Caa1 and assigned them a developing outlook.
The Greek downgrade followed last week’s approval by euro zone officials of a bailout plan that combines €109 billion in new financing with approximately €37 billion in debt relief from the private sector by way of a debt swap.
In an official statement, Moody’s commented that “The announced [European Union] program along with the Institute of International Finance’s (IIF’s) statement (representing major financial institutions) implies that the probability of a distressed exchange, and hence a default, on Greek government bonds is virtually 100%.”
In an additional report, Moody’s warned that despite European leaders’ claims that the Greek debt swap will not be applied to other members of the PIIGS, ”the support package sets a precedent for future restructurings should the finances of another euro area sovereign become as problematic as those of Greece.”
European markets were under modest selling pressure, with the major equity indices lower by 0.1-0.3% in afternoon trading. In the currency markets, the euro dipped 0.2% to 1.4358 against the U.S. dollar.
Premier Gold Mines Provides Mid-Year Update
- Premier Gold Mines recently announced its intention to acquire Goldstone Resources.
- New discoveries have been made at Hardrock including the recently identified Tenacity South horizon where drilling has confirmed high-grade mineralization up to 10.89 grams per tonne (g/t) gold across 10.0 meters including 45.40 g/t across 2.0m and 37.49 g/t across 2.1m.
- Drilling at the Rahill-Bonanza joint venture project in Red Lake continues to define high-grade gold mineralization within the "2E Horizon" with visible gold seen in recent down-plunge drilling.
- Drilling at the PQ North Project has intersected numerous gold-bearing shear zones in addition to mineralized iron formation units with alteration and mineralization similar to the nearby Musselwhite Gold Mine.
- The company has three drill rigs active at the Saddle Project in the Carlin Trend. Several holes have intersected significant mineralization and a results update will be provided in the coming weeks.
