Ratings agencies hammer Greek debt

S&P has downgraded Greece's credit rating by two notches on default fears, while Moody's and Fitch are also preparing to cut its further, according to reports.

S&P agency slashed the country's debt rating for the fourth time in a year on default fears, taking it from BB to B, while a further cut would make it the lowest-rated country in Europe, Bloomberg reports. In response, the yield on Greek 10-year bonds surged 12 basis points to 15.6%, double the level at the time of the bailout in May last year. The agency's move follows a warning by European finance ministers the bailout package would need a boost to prevent a restructure of Greece's €327bn national debt. "The downgrade reflects our view of increasing sentiment among Greece's key e...