WASHINGTON
Standard & Poor's credit rating agency downgraded Greece's long- and short-term sovereign rating to 'CCC+/C' from 'B-/B', saying it expects the country's debt will be unsustainable without economic reform.
The downgrade "reflects our view that Greece's solvency hinges increasingly on favorable business, financial and economic conditions," S&P said in a statement on Wednesday.
"In our view, these conditions have worsened due to the uncertainty stemming from the prolonged negotiations between the almost three-month-old Greek government and its official creditors.”
The agency added it believed the uncertainty may be the reason the Greek economy shrank one percent over the last six months.
It also gave Greece a negative outlook, warning that economic prospects could deteriorate further unless talks between Greece and its creditors reach agreement soon.
