Fitch Ratings-London-30 December 2014: Early elections following the Greek parliament's failure to appoint a new president increase the risks to Greece's creditworthiness, Fitch Ratings says. Negotiations with official creditors, and any potential reopening of market access, will be put on hold until after the elections. Following the elections, which are likely to take place on 25 January, political and policy uncertainty will probably remain high for some months.
If the left-wing opposition Syriza party wins the largest share of the vote, it will receive a 50-seat bonus and will therefore be part of any government that is formed. Syriza has maintained a lead in the opinion polls over the incumbent centre-right New Democracy party since coming top in May's European elections. However, this lead has narrowed in recent weeks making the election a close call and an overall Syriza majority unlikely. If the formation of a new coalition is not possible, Greece ('B'/Stable) will return to the polls, which would further prolong the political uncertainty.