Bond issue with an eye on rating agencies

This week's issue of a seven-year bond has shown Greece is maintaining its presence in the markets as well as strengthening the country's cash reserves by 2 billion euros at a time when it needs liquidity to respond to the cost of the Covid-19 crisis. It also illustrated how significant a country's rating is in periods of turbulence such as this, and the damage caused by the eurozone's reluctance to introduce bolder support measures such as a Eurobond.

Greece made a market foray at a particularly adverse juncture, despite the new QE program the European Central Bank has started including Greek bonds. Debt sustainability concerns for the weakest states and fears of a new debt crisis have not subsided after the recent Eurogroup; instead, they have grown.

Analysts say that although Greece raised 2 billion euros after drawing bids adding up to 5.9 billion on Wednesday, it...