Greek Ratings Upgraded, UBS Settles Libor Probe for $1.5 B

Arthi Gupta
19 Dec, 2012
New York City

The European indexes gained after a rating agency upgraded Greek credit. UBS estimates loss in the fourth quarter on litigation and regulatory charges.

[R]2:15 PM Frankfurt – The European indexes gained after a rating agency upgraded Greek credit. UBS estimates loss in the fourth quarter on litigation and regulatory charges.[/R]

The European indexes rose after German business confidence improved more than anticipated in December. However, euro area construction output declined in October 1.6% in October.

In Paris trading, the CAC-40 Index gained 18.36 or 0.5% to 3,666.76 and in Frankfurt the DAX Index edged higher 22 or 0.3% to 7,675.31.

The yields on Spain’s benchmark were at 5.26%. Italian 10-year yields dropped four basis points to 4.41%.

Standard and Poor''s upgraded Greece''s credit rating from ''selective default'' to ''B-'', citing the completion of the successful completion of the debt buyback and winning the approval by the Eurogroup of a loan disbursement under the second economic adjustment program.

The debt rating agency said the euro zone member states'' decision to provide material cash flow relief to Greece as indicative of their determination to restore stability to Greek finances, and to preserve the country’s euro zone membership.

UBS Estimates Q4 Loss on Libor Charges

UBS AG, the Swiss lender agreed to pay nearly Sfr1.4 billion in fines and disgorgement to the US, UK and Swiss authorities to resolve LIBOR-related investigations.

The company said it would pay $1.2 billion to the U.S. Department of Justice and the Commodity Futures Trading Commission, £160 million to the UK''s Financial Services Authority and Sfr59 million as disgorgement of estimated profits to Swiss regulator Finma.

UBS estimated a net loss in fourth quarter from the provisions for litigation and regulatory charges.