Greece rejects further downgrade of credit rating by Standard and Poor's

13:31, June 14, 2011      

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Greece rejected the new downgrade of its credit ability rating by international rating agency Standard and Poor's on Monday deeper into the junk territory from B to CCC.

Standard and Poor's cut by three notches to an international record low the country's credit rating at the moment, with a negative outlook, forecasting increasing likelihood of a Greek debt restructuring or default in the near future.

The agency's experts argue that the picture appears bleak, due to the widening financing gaps, as debt-ridden Greece has missed targets in the implementation of an EU-International Monetary Fund (IMF) supported plan to exit the debt crisis by 2014.

"Today's decision makes reference to rumors and statements by representatives of the European Commission and European Central Bank. However, it ignores the intense consultations taking place currently between the same institutions and the IMF aimed at designing a viable solution that will cover the financing needs of Greece in the coming years," said a statement released by the Greek Finance Ministry.

The decision also neglects the efforts of the Greek government to avoid any violation of Greece's contractual obligations, and the strong desire of the Greek people to plan for their future within the Eurozone, added the statement, noting that a Medium- Term Fiscal Strategy to be passed by the end of June outlines specific fiscal commitments that will ensure the sustainability of Greek sovereign debt.

Greek media noted furthermore that the new downgrade comes on the eve of a Eurogroup meeting in Brussels on Tuesday and ahead of a significant EU summit next week regarding the release of further aid to Greece.

On June 1 Moody's downgraded the country's credit ability rating from B1 to Caa1 with a negative outlook, triggering a similar statement by the Greek government.

Source: Xinhua
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