Journal 14, 2011
Catching up to a market that has been expecting a Greek default, Standard & Poor's cut its ratings on that nation's debt by three notches, citing risks that negotiations over a new bailout package for Greece could result in default.
The agency lowered its rating from B to triple-C, one notch lower than Moody's Investors Service, which slashed its rating on Greece at the start of the month.
The cut makes Greece the lowest rated country in S&P's universe, below that of Jamaica, Pakistan and Fiji, and below Argentina and Ecuador, which have recently defaulted on their debt. S&P doesn't rate every country, so some likely have worse credit profiles than Greece.
S&P said that, even if a Greek default didn't result from negotiations with other euro-zone nations and the International Monetary Fund, there was a substantial risk that bondholders would be forced to take losses after 2013.
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