S&P Cuts Greece Further Into Junk Territory, May Cut Again In Near Term

Standard & Poor's on Friday downgraded Greece's long-term rating to B-minus from B and kept the rating on CreditWatch negative, meaning it could downgrade it again in the near term. The move has pushed the rating further into speculative, or junk status. "Liquidity constraints have narrowed the timeframe during which Greece's new government can reach an agreement with its official creditors on a financing program, in our view," the rating agency said in a statement. "We believe the potential uncertainties surrounding the timing and success of such an agreement risk exacerbating deposit outflows, depressing investment, and weakening tax compliance."