May 2, 2012 at 8:51 AM ET
Out of the fire, but still in the frying pan.
Standard & Poor's raised Greece's credit rating to CCC from SD, aka, selective default, Wednesday as the ratings agency recognized Greece's completion of its distressed debt exchange on April 25, but still thinks the troubled European country's economy has a huge debt burden and a slew of other risks.
The debt exchange reduced Greece's load by about a third, but Athens' debt rating remains firmly in junk status. Greece's debt woes helped precipitate a eurozone financial crisis that threatened to push the global economy into a new recession before the debt exchange pulled Greece back from the brink after it defaulted on a portion of its debt.
Plenty of threats remain, S&P said: a moribund economy, rising discontent at the country's austerity program, a huge external deficit and the above-mentioned debt load.
"The 'CCC' rating on Greece reflects our view of the recent reduction in government debt following the restructuring, the reduction in debt servicing costs as a result of the exchange, and the increased average maturity of the central government debt stock. It also reflects our view of the significant stresses on Greece's creditworthiness," S&P said.