Fearing Default, S&P Knocks Greece Further into Junk Status

Pointing to rising chances of a default, Standard & Poor's once again slashed Greece's credit rating on Monday, underscoring the continued concern about Europe's sovereign debt mess. S&P downgraded its long-term rating on Greece to “CCC” and kept a negative outlook, leaving the door open for further cuts in the next 12 to 18 months. The new rating knocks Greece eight notches into junk territory. The ratings company cited significantly higher chances of one or more defaults related to Greece's emerging financing gaps, especially because of a lack of access to market financing in 2012 “and possibly beyond.”

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