Moody’s cuts Greek debt by three notches

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Series Details 26.7.11
Publication Date 26/07/2011
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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.

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