Moody’s: Delays in concluding Greece’s bailout program review are “Credit Negative”

Moreover, as per the rating agency, political uncertainty is again on the rise, as the governing coalition of Syriza - Anel holds only a three-seat majority in the 300-seat parliament, and could face difficulties in passing the legislation for the required social security reforms and tax increases.

As Moody’s notes, the centre-right opposition party New Democracy (ND), restructured under its new leader Kyriakos Mitsotakis, is now leading in opinion polls and could seek to force new elections. Moreover, Greece’s programme review has gradually become entangled with both the EU’s refugee crisis, with Greece hosting more than 50k refugees, and the UK’s June 23 referendum on EU membership, the latter of which threatens to delay Greece’s bailout package review until after June.