Are you sure?

Moody’s cut Greece’s credit rating

Moody’s Investors Service has cut Creece credit ratings by three steps to B1 from Ba1, to the same level as Belorus and Bolivia. Moody’s cited concerns over tax collection and „implementation risks” in the budget cuts demanded as a condition for Greece’s €110 billion bailout package last year.

Moody’s Investors Service has cut Creece credit ratings by three steps to B1 from Ba1, to the same level as Belorus and Bolivia. Moody’s cited concerns over tax collection and „implementation risks” in the budget cuts demanded as a condition for Greece’s €110 billion bailout package last year.

“The rating agency believes that the likelihood of a default or distressed exchange has risen since its last downgrade of the Greek government debt rating in June 2010,” a Moody’s statement said today.

Greek 10-year government bonds fell, sending their yield to 12.3 percent, more than anywhere else in the euro region, the Bloomberg reported. The premium that investors demand to hold the bonds instead of benchmark German bunds rose 4 basis points to 901 basis points today. The spread reached a euro-era record of 974 basis points on Jan. 7.