Moody's cuts Greece rating four notches to Ba1

14th June 2010, Comments 0 comments

Moody's rating agency cut its rating for Greece by four notches on Monday from A3 to Ba1, dropping it to speculative investment level on concerns about how it may repay its debts.

Moody's said that considerable uncertainty about Greek plans, even with the help of an EU-IMF 110 billion euro bailout package, to reduce its massive debt and balance its public finances justified the ratings cut.

"This uncertainty represents a risk that leads Moody's to believe that Greece's creditworthiness is now consistent with a Ba1 rating, a rating which incorporates a greater, albeit, low risk of default."

It said the ratings outlook was now stable.

© 2010 AFP

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