Until the crisis hit, rating agencies were relaxed about Greece’s solvency. Fitch rated the country as ‘A’ in October 2008, Standard & Poor’s gave it an ‘A-’ in January 2009, and Moody’s gave it an ‘A1’ in February 2009.
But by 2011, all three agencies had downgraded Greek debt to junk status.
Ratings may seem fine and markets relaxed, but sentiment can change quickly.
