Greece rating cut by Moody's amid default warning

[jaxx]

25 July 2011 Last updated at 02:35 ET
Greece rating cut by Moody's amid default warning

Credit rating agency Moody's has cut Greece's rating, warning that a planned debt swap would constitute a default.

The rating was cut another three notches from Caa1 to Ca - just two more notches shy of a default rating.

"The announced EU programme... implies that the probability of a distressed exchange, and hence a default, on Greek government bonds is virtually 100%," the agency said.

<..> "Looking further ahead, the EU programme and proposed debt exchanges will increase the likelihood that Greece will be able to stabilize and eventually reduce its overall debt burden," it said.

http://www.bbc.co.uk/news/business-14271936

Maybe it would be better if the Moody's of the world just quit with the warnings.