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Fitch downgrades Greece's debt rating to CCC on eurozone exit risk

Last Updated: Friday, May 18, 2012 - 10:29

London: International ratings agency Fitch has cut Greece's credit rating from B- to CCC, citing the "heightened risk" that Greece could leave the eurozone.

Recent parliamentary elections and subsequent failure to form a government underscore the lack of public and political support for the austerity plans in Greece, the agency said in a statement, explaining the downgrade, Xinhua reported on Thursday.

Greece would likely have to exit from the eurozone if the country failed again to form a government after the new general elections June 17.

Fitch forecast a Greek exit would result in widespread default on private sector as well as sovereign euro-denominated obligations.

Fitch uses intermediate +/- modifiers for each category between AA and CCC, which denotes: currently vulnerable and dependent on favourable economic conditions to meet its commitments. AA denotes quality companies, a bit higher risk than AAA.

IANS

First Published: Friday, May 18, 2012 - 10:28
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