Greece Debt Downgraded to Junk – Take 2

Greece’s government bonds have been downgraded by another credit rating agency.  After Standard & Poor’s rated Greece as ‘junk’ in April, now Moody’s has done the same.

Despite the downgrade, Greece seems to be on course with its plans to cut its deficit from 14% of GDP to 3% by 2014.  Moody’s added that it did not see a risk of default for Greece, and that its new status was stable (for now).

Currently, the IMF and EU representatives are carrying out an audit on Greece’s finances, as part of the €110 billion rescue plan they received.

The news caused renewed euro-selling on the currency market, after it had eased off over the past few days.

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