Moody’s cuts Greek debt by three notches

The second bail-out of Greece in July 2011 will weaken the credit ratings of Italy and Spain as well as resulting in a default for Athens, Moody’s said on the 25 July 2011.

The US rating agency downgraded Greece by three notches to Ca, Moody’s next-to-lowest rating and one that implies the country is 'very poor or in default'.

But it also warned that, in spite of reducing contagion in some ways, the previous week’s set of measures to shore up the eurozone could lead to downgrades of creditor countries not rated triple-A because of the precedent for future bail-outs.

France24, 25.7.11: Moody's downgrades Greece to near-default http://www.france24.com/en/20110725-greece-credit-rating-agency-downgrades-moody-default

BBC News, 25.7.11: Greece rating cut by Moody's amid default warning http://www.bbc.co.uk/news/business-14271936

Deutsche Welle, 26.7.11: Athens taxi drivers steer strike into second week http://www.dw-world.de/dw/article/0,,15265410,00.html

Deutsche Welle, 25.7.11: Greece's second bailout could send wrong signal, experts warn http://www.dw-world.de/dw/article/0,,15263505,00.html

Ta Nea, 26.7.11: The miracle that lasted just three days (via PressEurop) http://www.presseurop.eu/en/content/article/797081-miracle-lasted-just-three-days

Kathimerini, 26.7.11: Greek debt swap process to start in August says minister http://www.ekathimerini.com/4dcgi/_w_articles_wsite2_18782_26/07/2011_399858

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

ESO: Background information: Euro rescue deal fails to dispel fears / IMF poised to take backseat role in Greece rescue http://www.europeansources.info/record/euro-rescue-deal-fails-to-dispel-fears-imf-poised-to-take-backseat-role-in-greece-rescue/

EUObserver, 26.7.11: Greek credit downgraded amid concerns about EU debt plan http://euobserver.com/9/32659

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