Moody’s downgrades credit rating

By Patrice Hill at Washington Times

Greece’s debt crisis again sent shock waves through global markets Thursday, pushing the nation closer to a rescue by the European Union and International Monetary Fund and deepening concern about wobbly finances throughout the eurozone.

Wall Street credit agency Moody’s Investors Service further downgraded the debt of the beleaguered nation, raising fresh questions about whether it will be able to repay its massive debts and forcing up the interest rates that Greece must pay close to double-digit levels.

Moody’s took the action as the EU raised its estimates of Greece’s budget deficit this year to 13.6 percent of economic output – the second-highest in the eurozone after Ireland’s – leaving Greece even further from achieving the fiscal stability it needs to cure its budget and economic woes in the face of persistent protests by government labor unions.

“Greece’s difficulties are spilling over into other Eurozone economies, with Portugal looking to be the next major economy to fall into the debt abyss,” said Karl Schamotta, a market strategist at Custom House, a Canadian foreign-exchange firm.

FULL STORY

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