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Thursday, August 9, 2012

Greek Outlook 'Negative' As S&P Downgrade...Does the EU Really need any more Clues?

A leading credit rating agency has downgraded Greece giving the debt-ridden country a "negative" outlook.

Changing the status from "stable", Standard & Poor's (S&P) said the economy in the crisis hit nation was worsening and it was likely to need yet more funding.

S&P also stated political challenges could soon force another downgrade.

"The negative outlook reflects the potential for a downgrade if shortfalls in Greece's 2012 deficit and arrears targets established under the current EU/International Monetary Fund program are not met by new funding or other relief," S&P said in a statement.

It added: "We see the likelihood of shortfalls, owing to election-related delays in the implementation of budgetary consolidation measures for the current year, as well as the worsening trajectory of the Greek economy."

The cut in Greece's already junk-level rating comes following comments from eurogroup president Jean-Claude Juncker that a Greek exit from the eurozone would be "manageable". Read More