Moody’s downgrades Greek credit rating to ‘Caa2’ over uncertainty

The Moody's Ratings Agency said in an announcement on Thursday that it downgraded Greece’s from “Caa1” to “Caa2”, while also assigning it a “negative outlook”, in response to the political and financial uncertainty. According to the announcement, the short-term review has not been affected and remains “not prime”, while review prospects are also negative. It also said that the latest downgrade concludes a review that began on February 6th.

Moody’s said that the main reasons for this development is that there is major uncertainty as to whether the Greek government is going to reach an agreement with its creditors so that it can in return cover its needs. Furthermore, with a week economy and fragile political situation, there are high risks in the implementation of a midterm program.