ATHENS - Ratings agency Moody's cut Greece's sovereign debt by three notches on Monday to Ca, just one notch above default, saying the new bailout set a negative precedent for creditors of other debt-burdened countries.
Euro zone leaders agreed last week to offer Greece debt relief through a new rescue package of easier loan terms, with private creditors shouldering part of the burden via a debt exchange.
The downgrade means Greece now has the lowest rating of any country in the world covered by Moody's, which, like Fitch last week, said it would offer a new rating after the debt swap was completed.
"Once the distressed exchange has been completed, Moody's will reassess Greece's rating to ensure that it reflects the risk associated with the country's new credit profile, including the potential for further debt restructurings," it said.
Last Friday, Fitch Ratings said Greece would be declared in restricted default due to the steps taken in the new euro zone rescue package but that new ratings of a low speculative grade would likely be assigned once the bond exchange is completed.
Translation: Once we finish shuffling the unpayable debts around to make it LOOK like we're good for another few years (and get past the next election cycle) and expose MORE people to risk from default (the more people who are invested in the "plan", the more people we'll having screaming to "fix it" in the future). It is the upcoming fate of our great country because the people we elected did their job with such buffoonist incompetency, we have went from the lender to the world to the biggest debtor. And they want your vote again? They sure do! Yippee!! You just KNOW--- the NEXT group of people who promise to "fix it" WILL actually fix it!! Promise!
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