S&P downgrade Greece to ‘junk’ status

| April 27, 2010 | 0 Comments
S&P downgrade Greece to 'junk' status

Greece’s woes deepened today after Standard & Poor’s (S&P) cut the country’s credit rating to BB+ from BBB-.

According to S&P, the downgrade comes amid worries that it is not able to take the necessary action in order to manage its economic crisis.

The debt-ridden economy is asking for help from fellow euro zone nations and the International Monetary Fund (IMF) in order to allow it to meet its debt repayments.

However, many have raised concerned that it is not able to meet the conditions required to access the funds.

The downgrade hit global stock markets with London’s FTSE 100 closing down 2.6%, while the Dow Jones index was 1.4% lower at 11,052.1 points following the news.

Furthermore, banking shares in Greece were hit, falling by more than 9% - the biggest one-day fall in bank shares for 18 months.

The announcement comes shortly after Portugal’s debt was downgraded two notches A- from A+.

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