Moody’s slashes Greek debt rating by three notches

Moody’s cut Greece’s credit rating by three notches on the 7 March 2011, reducing the country’s bonds to 'highly speculative' status.

The Greek government rounded on Moody’s after the decision highlighting a growing risk that the country would have to restructure its public debt.

However, on the following day Greece’s cost of borrowing hit the highest levels since the international community intervened to rescue the eurozone bond markets from imploding in May 2010.

Greek yields leapt higher amid growing fears that the country would be forced to default on its bonds after the multi-notch downgrade by Moody’s.

Spiegel Online International, 8.3.11: 'Greece Is Clearly in Need of Debt Restructuring' http://www.spiegel.de/international/europe/0,1518,749707,00.html

ESO: Background information: Greece hits out at credit rating agency http://www.europeansources.info/record/greece-hits-out-at-credit-rating-agency/

BBC News, 8.3.11: Greece debt rating cut further by Moody's http://www.bbc.co.uk/news/business-12664681

Kathimerini, 7.3.11: Moody's slashes Greek rating by three notches http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_1_07/03/2011_381724

ESO: Background information: The Greek debt crisis of 2010 http://www.europeansources.info/record/the-greek-debt-crisis-key-sources/

ESO: Background information: Moody’s downgrades Cyprus sovereign rating http://www.europeansources.info/record/moodys-downgrades-cyprus-sovereign-rating/

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