Greece has been downgraded to an emerging market by S&P Dow Jones Indices and was assigned a weighting of 0.8% in the emerging market index. In contrast, China constitutes about a quarter (24%) of the index while Brazil and India make up 11.3% and 10%, respectively.
The reclassification by S&P Dow Jones Indices follows the move by the more widely followed MSCI and Russell Indexes last year who also downgraded Greece to emerging market status while the FTSE index has Greece on its developed market watchlist.
The changes to the S&P Dow Jones emerging BMI index will become effective on September 22 and could make pension funds move out of investing in the Athens stock index.
However and late last week, Standard & Poor’s raised Greece’s credit rating by one notch to ‘B’ from ‘B-‘ and said it expected Athens to continue reporting budget surpluses before interest payments in the next few years. Specifically, Standard & Poor’s said:
“The upgrade reflects our view that risks to fiscal consolidation in Greece have abated… The outlook is stable, balancing our view of Greece’s progress in fiscal consolidation against the still-weak economic recovery and political resolve to continue with structural and institutional reforms.”
To read the whole article, Greece downgraded to ’emerging market’ status and S&P raises Greece by one notch in latest ratings boost, go to the website of The Telegraph and Reuters, respectively.
Similar Posts:
- Greece Offers Opportunities For Investors Willing to Take Risks (FT)
- How ECB QE Could Impact Emerging Markets (FT)
- Pew Survey: 98% of Greeks Consider Economic Situation as “Bad” (KeepTalkingGreece.com)
- Invest in Poorer Performing Emerging Markets for Better Gains? (CNBC)
- The 15 Most Miserable Emerging Market Economies (Bloomberg)
- Eleven Frontier or Emerging Markets Near Bankruptcy (USA Today)
- The World’s Biggest Sovereign Debt Defaults (CNBC)
- Bloomberg’s Misery Index’s Most Miserable Emerging Markets
- Henderson’s Bennett: “No Real Emerging Europe, We Have Got Submerging Europe” (Citywire)
- Investing in Greece ETFs / Greece ETF List
- Investing in Greece ADRs / Greek Stocks List
- ETFs Add to African Access (S&P Global)
- Emerging Europe ADRs List
- S&P South Africa Downgrade Excerpt (Rand Daily Mail)
- Investing in Emerging Europe ETFs / Emerging Europe ETF List (Region Wide)
