lowered its long-term sovereign credit rating on Greece to ΄BB-΄ from ΄BB+΄ and maintained the rating on CreditWatch with negative implications.
At the same time, the rating agency placed its ΄B΄ short-term sovereign credit rating on Greece on CreditWatch with negative implications.
The agency said the cut followed the concluding statement of last week΄s European Union summit, which confirmed expectations that sovereign-debt restructuring may be a potential prerequisite for borrowing from the European Stability Mechanism.
S&P also cut Portugal΄s credit rating to BBB- from BBB on Tuesday, leaving it just one notch above junk status.
source: CAPITAL
