15 June 2010

Greece Downgraded to Junk - by Moody's

Greece recived another junk rating this week, this time from another top credit ratings agency, Moody's. Down to Ba1 from A3, Moody's is the second agency to downgrade Greece's government bonds.

The country, which has been at the heart and core of the European debt crisis, has pledged to reduce its deficit from 14% of GDP to 3% by 2014. So far, it says it is ahead of schedule on this mission.

Still, a downgrade seemed inevitable, though Moody's did add that this rating was now stable for at least 18 months.

The euro, which has seen some investor interest on the foreign exchange market over the past few days, has taken the main rap from the European crisis.

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