May 9, 2011
We expected more euro-zone headlines this morning, and we’re getting them, courtesy of Greece.
Standard & Poor’s lowered its debt ratings on Greece (again), and kept the ailing euro-zone nation on credit watch with negative implications. The ratings for long-term debt were reduced to B from BB-, and short-term debt ratings were reduced to C from B. Both ratings are now well into junk range, which will add fuel to the Greek debt restructuring debate.
European shares are broadly lower and the euro has turned negative against the dollar, following the S&P move. U.S. futures remain positive, but are retreating from their best levels of the morning.
Ahead of that ratings change, a cavalcade of stories about the euro-zone debt crisis highlighted the challenges facing eurocrats as they try to hold the ailing members of the common currency together. Along with Greece, Ireland is in the rescue box and Portugal’s own rescue is being finalized this month.
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