Moody's downgrades Greece's credit rating

22/12/2009

ATHENS, Greece -- Moody's downgraded Greece's credit rating Tuesday (December 22nd), the third ratings agency to do so over fiscal concerns. Moody's said that its future rating decisions will depend on the government's plans to cut debts. Earlier this month, Standard & Poor's and Fitch downgraded Greece's sovereign rating due to the country's huge budget deficit and public debt. Greece, a member of the eurozone, has been heavily criticised for its rapidly expanding deficit, now estimated at 12.7% of GDP. Analysts had predicted Moody's downgrade of government bonds would be worse than it was, triggering a welcome rally in early trading Tuesday. The Athens benchmark stock index was up 2.42%. Over the past 30 days, it has dropped 11.9%. (Reuters, Wall Street Journal, AP, BBC - 22/12/09)