Fiscal risk has increased for Greece

International rating agencies harbor serious concerns over the consequences of the government's pre-election announcements on the Greek economy, suggesting that the handout talk is likely to impede efforts to help Greece get back to investment-grade status.

For the rating agencies, the extensive and rapid reversal of reforms in the post-bailout surveillance program is one of the factors that could have a negative impact on the country's assessment, while it is certain that it will generate tension with Greece's creditors - as will become evident at June's Eurogroup - damaging investor confidence.

As the agencies' chief analysts for Greece warned while speaking to Kathimerini, the fiscal risk for this country has increased and sanctions by the creditors are a certainty; they are likely to freeze any further easing of the national debt, and they may even block the early...