Greek Non-payment To ECB Won't Constitute Default: S&P

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A failure by Greece to repay €6.7 billion worth of bonds held by the European Central Bank due in July and August, won't count as a default, Standard and Poor's said in a report on Monday. The ratings agency explained that because the ECB is considered to be an official creditor, a non-payment would not trigger a move into "selective default" territory. "All other things being equal, however, such nonpayment would likely constitute a negative factor in our analysis and could lead to a lower, albeit nondefault, long-term sovereign rating than the current 'CCC' rating," S&P said in the report. The report comes as Greece struggles to reach a reform deal with lenders in order to unlock its next portion of aid money. European officials on Sunday dismissed Greece's latest reform proposals calling them "vague and repetitive."

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