14 JUN 2011
Yield on Irish government bonds at highest level since introduction of euro
By Donal O'Donovan | Irish Independent
GREECE now has the lowest rating of any country, after a rating cut last night. Standard & Poor's (S&P) cut its rating for Greek government debt last night, amid rising confusion over planned "burden sharing" with bondholders.
The ratings agency made the cut after markets shut. It cut the Greek government's rating three places to CCC, the lowest of any country. S&P's Greek debt rating is now one notch below rival Moody's. Moody's downgraded Greece's debt on June 2.
S&P said Greece was "increasingly likely to restructure its debt". The agency said a restructuring was likely to result in a technical default.
Greece will be considered to be in default if it moves to delay its scheduled debt repayments, even if the debt is eventually repaid in full.
S&P blamed the current war of words between Germany and the European Central Bank, as well as Greece's finances, for the latest ratings cut.
Read entire article
S&P: a Greek default is now likely (City A.M.)