‘We don't think that a Greek exit would be inconsequential’ – Moody’s

FXStreet (Mumbai) - A Greek exit from the euro bloc would not be without consequences as it would change the nature of the single currency area, which was supposed to be permanent, a senior analyst at Moody's said on Thursday.

Kathrin Muehlbronner, vice-president of sovereign risk at Moody's international ratings agency noted in an interview for Reuters on Thursday,

“We don't think that a Greek exit would be inconsequential,”

“(Grexit) would change the face and the nature of the monetary union, which was supposed to be permanent and would then turn out not to be,”

“It's unclear how it would play out,”

“The sovereigns in a way are protected by the ECB's QE. It's less certain about bank funding and corporate funding and their ability to access markets.”