Credit Rating for Greece - Downgraded
January 14 2009
by Senior Advisor, John Dietz CAPP, CWPP
Greek stocks plummeted today when the S&P downgraded the Greel credit rating from A to five notches down to A minus.  The rating A is five notches down from the top rating of AAA.  This is the first downgrade of any western type European economy.
Heightened concerns across the Eurozone were displayed by reports of falling stocks and further plunges in the European Union housing market and bank stability.  Not of coincidence, Spain and Portugal were placed on credit watch simultaneously.  Many analysts claim this to be a wake up call to many other European countries concerning the financing and undertaking of large debts.  Ireland was placed on a negative outlook list last Friday.  These countries could face imminent downgrades.
The need for reform was enforced when S&P said the country’s repeated failures to stick to budgetary plans had led to structural weaknesses in fiscal management.