Europe

Europe: S&P raises its rating on Greece to B-minus from selective default Tuesday, citing a strong and clear commitment from members of the euro zone to keep Greece in the common currency bloc. Even with the country still facing challenges, S&P placed a stable outlook on the new B-minus rating. That buoys hope that the worst of Greece's problems could be in the past. Greece was downgraded to selective default from triple-C Dec 5, when the country commenced its second debt restructuring of the year. The selective default rating was only temporary and is a typical rating from S&P when a country goes through a debt restructuring. S&P noted that even after the debt repurchase, Greece's debt-to-GDP ratio is more than 160%, among the highest in the world. The rating could be slashed in the future if there is a likelihood of another distressed debt exchange, S&P said. An upgrade could eventually be possible for Greece if it fully follows through on complying with bailout requirements and policymaking helps contribute to a sustained economic recovery. S&P's rating is higher than what competitors Fitch and Moody's rate the country. Fitch has a triple-C rating and Moody's a single-C rating on Greece.