Tuesday, June 14, 2011

S&P cuts Greece credit rating to CCC

From Bloomberg:

Greece had its credit rating cut by three levels to CCC by Standard & Poor’s and the rating company said the nation is “increasingly likely to restructure its debt.”

A restructuring would likely “result in one or more defaults under our criteria,” S&P said in a statement today. “Risks for the implementation of Greece’s EU/IMF borrowing program are rising, given Greece’s increased financing needs and ongoing internal political disagreements surrounding the policy conditions required by Greece’s partners.”

The downgrade comes as the European Central Bank and Germany battle over how to bail out Greece and whether officials should push creditors to share some of the costs. ECB President Jean-Claude Trichet said today that his advice to European governments is to “avoid what would be a compulsory concept” and “avoid whatever would trigger” a default......read on