ATHENS: Ratings agency S&P has downgraded Greece’s credit rating again, saying it expects its debt and other financial commitments will be “unsustainable”. It has dropped long and short-term sovereign credit ratings to CCC+/C from B-/B and says its outlook is negative. Markets use sovereign ratings to work out the interest rate at which investors should lend to a country.
Official figures on Wednesday also showed Greece’s deficit last year was higher than government forecasts. The budget deficit – the difference between its revenue and spending – was 3.5% of GDP, compared with the prediction of 0.8%. The worsening finances of the government could see Greece’s creditors pushing for further austerity, experts said.
