Greece default ‘virtually 100 percent’ |
| Washington Post - Jul 25, 2011 |
Moody’s Investors Service again downgraded Greece’s credit standing Monday, setting the stage for a likely declaration that the country is in default as a newly approved rescue plan moves forward.
In the first review by a ratings agency of the plan approved by European leaders last week, Moody’s cast doubt on the long-term impact on the conditions under which heavily indebted euro zone countries will be able to borrow money.
The ratings service said the plan does improve Greece’s financial prospects for the next few years and probably will stop the problems in that country from undermining confidence in weaker nations such as Ireland and Portugal — diminishing the risk that Europe’s financial troubles will spiral into a broader crisis.
But the fact that Greece is likely to default on one or more of its outstanding bonds sets a “negative precedent” that will diminish faith in other nations. Now that the 17-nation euro zone has shown it is open to a default, Moody’s said, it is more likely that other nations might try to follow suit.
Read Full Article from Washington Post
- Posted: 2011-07-25 11:04:08
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