S&P downgrades Greece to emerging market status

Index provider S&P Dow Jones has cut Greece from developed market to emerging market status.

The move will mean S&P’s range of equity indices - which are used as benchmarks by active and passive funds - will be rebalanced to reflect the “reclassification” in September 2014.

The index provider described Greece’s equity market as having endured a “dramatic and consistent reduction in size”, as well as citing difficulties in dealing some assets.

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In March Russell downgraded Greece’s status to ‘emerging’, while MSCI - which runs the widely-used MSCI Emerging Markets indices - followed with a similar move in June.

In addition, S&P Dow Jones has promoted Qatar and the United Arab Emirates from ‘frontier’ to ‘emerging’ status as both markets were deemed to meet standards of foreign investor access, liquidity and regulation.