Wednesday, January 14, 2009

Putting the "G" in...

Greece’s Sovereign Credit Rating Cut to A- by S&P (Update1)

By Maria Petrakis

Jan. 14 (Bloomberg) -- Greece had its sovereign credit rating lowered one step by Standard & Poor’s, which cited the country’s weakening finances.

The rating was cut to A- with a “stable” outlook, S&P said today in a statement from London. Greek stocks and bonds fell after the announcement.

“The ongoing global financial and economic crisis has, in our opinion, exacerbated an underlying loss of competitiveness in the Greek economy,” S&P said.

Greek 10-year bonds erased gains after the decision, with the yield on the benchmark 10-year note rising to 5.38 percent. The ASE Index extended losses, falling as much as 5.5 percent, the most in more than two months.

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