Moody’s Investors Service said Thursday that it has placed Greece’s Ba1 local and foreign currency government bond ratings on review for possible downgrade. “Moody’s decision to initiate this review was prompted…by the increased uncertainty over (1) Greece’s ability to reduce its debt to sustainable levels given the recent substantial upward revision in debt levels; (2) the substantial revenue shortfall that we have observed in 2010; and (3) the level and conditions of ongoing support that would be available to Greece in the event that its market access remains cut off,” said Moody’s in a statement. The ratings firm said a multi-notch downgrade “would be possible.”
Moody’s is the second agency to put the debt-choked country on review for possible downgrade this month, following a similar move by Standard and Poor’s.
Fitch is currently reviewing its rating and has said it would reach a conclusion by the end of the year.
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