IANS | 18 May, 2012
International ratings agency Fitch has cut Greece's credit rating from B- to CCC, citing the "heightened risk" that Greece could leave the euro zone.
Recent parliamentary elections and subsequent failure to form a government underscore the lack of public and political support for the austerity plans in Greece, the agency said in a statement, explaining the downgrade, Xinhua reported Thursday.
Greece would likely have to exit from the euro zone if the country failed again to form a government after the new general elections June 17.
Fitch forecast a Greek exit would result in widespread default on private sector as well as sovereign euro-denominated obligations.
Fitch uses intermediate +/- modifiers for each category between AA and CCC, which denotes: currently vulnerable and dependent on favourable economic conditions to meet its commitments. AA denotes quality companies, a bit higher risk than AAA.
