The European Central Bank (ECB) will continue to accept Greek sovereign bonds as collateral for liquidity as long as all agencies have not categorized a proposed rollover operation as a default.
Reuters reported an unidentified financial sector source cited in the Financial Times as saying that, despite a warning from Standard & Poor's that even a voluntary rollover of Greece's debt would be regarded as a default, the bank would continue to accept bonds as collateral. It would use whichever rating was highest as its determining factor.
The ECB, which uses four agencies’ ratings to determine collateral eligibility, already had suspended ratings requirements for the bonds of Greece and Ireland. The bank had said that if Greece went into default, it would no longer accept the country's bonds. However, if all four of the agencies—Standard & Poor's, Fitch, Moody's and DBRS—do not rate Athens as in default, it would use the top rating in the group.