Moody's Cuts Greece Government Ratings to Junk

Moody's has downgraded Greece government bond ratings into junk territory,

They cut the rating four notches to Ba1, placing it one notch into junk status. 


The IMF/eurozone rescue package "effectively eliminates any near-term risk of a liquidity-driven default and encourages the implementation of a credible, feasible, and incentive-compatible set of structural reforms, which have a high likelihood of stabilizing debt service requirements at manageable levels," said Moody's senior analyst Sarah Carlson.

"Nevertheless, the macroeconomic and implementation risks associated with the program are substantial and more consistent with a Ba1 rating," Carlson added.