Greece Downgraded Deeper Into Junk
The credit rating on Greece’s government debt was downgraded deeper into junk bond territory on Thursday.
Fitch Ratings cited the increased risk that Greece, operating now with a caretaker government, could be forced to leave the eurozone following more elections next month.
An exit from the eurozone would be “probable” if the elections fail to produce a government willing to stand by earlier austerity agreements reached with eurozone leaders, Fitch said.
In turn, the country’s departure from the eurozone would “result in widespread default on private sector as well as sovereign euro-denominated obligations,” the ratings agency said. (Moody’s downgrades Spanish regions)
And all 16 other countries in the eurozone could be dinged.