Greece and the European Union objected this week to the downgrade of Greece’s credit rating to “junk” status by Moody’s Investors Service credit rating agency.
Preceded by Standard & Poor’s, and Fitch, Moody’s downgraded Greece to “junk” status on Monday night.
Moody’s slashed Greek’s debt ratings four notches from A3 to Ba1. It shows the concerns the agency has about how Greece can pay its debts.
The Finance Ministry, busy these days with a review by officials from the European Union (EU), International Monetary Fund (IMF) and the European Central Bank (ECB) of Greece’s finances and reforms, responded Tuesday saying, ”The downgrade of Greek government bonds does not reflect in any way Greece’s progress over the past months.”
The ministry said that its budgetary measures as agreed on with EC, ECB and IMF are on track.
“Irrational” was the label Jean Claude Juncker, head of eurozone finance ministers put on the move since the EU and IMF are providing substantial support to Greece.
As quoted by AFP, he is “totally convinced that ... a few months from now, the financial markets will see that they were wrong.” The downgrade means that some investors are no longer allowed to invest in Greece’s bonds.
Preceded by Standard & Poor’s, and Fitch, Moody’s downgraded Greece to “junk” status on Monday night.
Moody’s slashed Greek’s debt ratings four notches from A3 to Ba1. It shows the concerns the agency has about how Greece can pay its debts.
The Finance Ministry, busy these days with a review by officials from the European Union (EU), International Monetary Fund (IMF) and the European Central Bank (ECB) of Greece’s finances and reforms, responded Tuesday saying, ”The downgrade of Greek government bonds does not reflect in any way Greece’s progress over the past months.”
The ministry said that its budgetary measures as agreed on with EC, ECB and IMF are on track.
“Irrational” was the label Jean Claude Juncker, head of eurozone finance ministers put on the move since the EU and IMF are providing substantial support to Greece.
As quoted by AFP, he is “totally convinced that ... a few months from now, the financial markets will see that they were wrong.” The downgrade means that some investors are no longer allowed to invest in Greece’s bonds.
