Open

Coming up

Don't miss

Replay


LATEST SHOWS

FOCUS

Republicans block Obama's bid to hike minimum wage

Read more

IN THE PAPERS

"Steely resolve of reporters exploited by pared-down employers"

Read more

IN THE PAPERS

Cécile Duflot ruffles some feathers

Read more

BUSINESS DAILY

US judge calls Argentina bond swap offer illegal

Read more

MEDIAWATCH

Media accused of pro-protester bias in Ferguson

Read more

DEBATE

The Murderous Lure of Jihad: Tackiling ISIS and its Worldwide Recruitment (part 2)

Read more

DEBATE

The Murderous Lure of Jihad: Tackiling ISIS and its Worldwide Recruitment

Read more

WEB NEWS

Calls for ISIS media blackout after execution of James Foley

Read more

WEB NEWS

Web users divided over Darren Wilson

Read more

  • US says Islamic State threat 'beyond anything we've seen'

    Read more

  • Malaysia mourns as remains of MH17 victims arrive home

    Read more

  • Reporter’s IS captors taunted family, asked for €100m ransom

    Read more

  • Two US Ebola patients leave hospital ‘virus-free’

    Read more

  • Hollande is ‘nobody’s president’ says former French minister

    Read more

  • Turkey’s Erdogan names foreign minister Davutoglu as next PM

    Read more

  • US reaches historic $16.7bn settlement with Bank of America

    Read more

  • Special report: Supplying Ukraine’s soldiers on the front line

    Read more

  • Israeli air strike kills three top Hamas commanders

    Read more

  • France delivered arms to Syrian rebels, Hollande confirms

    Read more

  • Tensions high in Yemen as Shiite rebel deadline looms

    Read more

  • Interactive: Relive the Liberation of Paris in WWII

    Read more

  • French village rallies behind besieged elderly British couple

    Read more

  • Former Irish PM Albert Reynolds dies at 81

    Read more

  • Former Femen activist detained after fighting veiled woman

    Read more

  • Thailand coup leader Prayuth Chan-ocha voted prime minister

    Read more

Europe

Greek financial woes deepen after S&P downgrade

Text by News Wires

Latest update : 2011-05-11

Greece's fiscal woes deepened on Monday after Standard & Poor's downgraded the country's credit rating to B from BB-, pushing the country further into ‘junk’ territory. The rating agency also warned that it may be necessary to restructure its debt.

REUTERS - Standard and Poor’s cut Greece’s rating to B from BB- on Monday, dragging it further into junk territory over concerns that a debt restructuring is increasingly likely.

One year into its EU/IMF bailout, Greece is struggling with weak revenues and a deep recession, fuelling speculation that it will have to restructure its debt to pull itself out of the fiscal mess that triggered the euro zone’s crisis.

 
“In our view, there is increased risk that Greece will take steps to restructure the terms of its commercial debt, including its previously-issued government bonds,” the agency said in a statement, warning that more downgrades could come.
 
S&P said euro zone countries would likely want private holders of Greek government debt to extend bond maturities as governments consider easing terms on the bailout that saved Greece from bankrupcty last year.
 
It said its projections suggest that principal reductions of 50 percent or more, known as a haircut, could be needed to restore Greece’s debt burden to a sustainable level.
 
European shares extended falls in afternoon trade on Monday after ratings agency S&P’s move, which downgraded Greece’s credit rating to lower than Belarus and Senegal.
 
By 1233 GMT, the FTSEurofirst 300 index of top European shares fell 0.8 percent to 1,135.28 points, with Greek benchmark down 2.3 percent, underperforming peers in the Thomson Reuters Peripheral Eurozone Index which shed 1.8 percent.
 
Greece, whose fiscal slippages triggered Europe’s debt crisis, is rated junk by all three major rating agencies. All other euro zone countries have investment grades only.
 
Monday’s rating puts S&P’s rating of Greece one notch below Moody’s B1 grade and four notches below Fitch’s BB+ rating.

 

Date created : 2011-05-09

  • GREECE

    Greek Central Bank rules out debt restructuring

    Read more

  • GREECE

    Greece reacts with fury as Moody’s slashes its credit rating again

    Read more

  • GREECE

    General strike, protests mark Athens austerity vote

    Read more

COMMENT(S)