Wall Street Journal
January 14, 2011
Fitch Ratings became the third major credit-ratings agency to cut Greece's ratings into junk territory, the latest sign the heavily indebted European nation continues to struggle from a severe recession.
Already, Moody's Investors Service and Standard & Poor's Ratings Service rate Greece in junk territory—with both last month warning further downgrades were possible. Fitch also warned of a downgrade last month, and became the first ratings agency to act on Greece's ratings this year.
The downgrade to BB+, the highest junk-level rating, acknowledges that while Greece's economic and fiscal performance under the European Union-International Monetary Fund program has in many respects exceeded expectations, its heavy public debt burden renders fiscal solvency "highly vulnerable to adverse shocks."
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