Moody's: Syriza's Win In Greek Election Is "credit Negative"

The victory for radical, far-left Syriza in Greece's general election over the weekend is a "credit negative" for the country, Moody's Investors Service said in a report dated Monday. The firm said the election outcome "prolongs financing, liquidity and economic growth risks" for Greece as it "throws into question the new government's ability to renew Greece's financial support program with the troika." The troika refers to Greece's international lenders -- the European Central Bank, the International Monetary Fund and the European Commission. Syriza and newly sworn-in Greek Prime Minister Alexis Tsipras have pledged to renegotiate Greece's bailout terms with the troika, but the lenders have said the country must repay all of its debts. "The uncertainty will hurt Greek banks' ability to access funding and maintain liquidity," Moody's said in its report. Details on Tsipras's cabinet started to emerge around midday in London. Yields on Greek government bonds have surged in the wake of the election, with borrowing costs on 10-year paper rising 48 basis points to 9.496% on Tuesday, according to electronic trading platform Tradeweb.