Greece falls deeper into junk zone on Moody's downgrade

Moody's has cut its credit rating of Greece by three notches, placing it deeper into the junk category, on concerns it will not be able to stabilise its debt pile.

The ratings agency slashed Greece's rating from B1 to Caa1 while maintaining its negative outlook, the Financial Times reports. The move leaves Greece with a worse credit rating than Montenegro, and on a par with Cuba. Moody's downgraded the country, warning there is a growing risk peripheral European countries will not be able to "stabilise" their debt positions without a restructure. However, Greece hit back, claiming Moody's is not taking into account the government's attempts to meet its fiscal targets for this year. The downgrade comes after the European Central Bank yester...