Fitch downgrades Greek sovereign debt

Linda Young – Fourth Estate Cooperative Writer

Athens, Greece (4E) – Fitch Ratings downgraded the credit rating of Greece’s government again on Thursday.

Greece’s credit rating dropped from a B- to a CCC, which puts it deeper into junk bond territory. That means many investors cannot buy Greek debt even if they thought it was a good investment.

The drop in ratings also increases the risk that Greece may not be able to hold on to its membership in the Economic and Monetary Union.

In addition, Fitch downgraded Greece’s short-term foreign currency rating to C from B.

Greece is now operating under a caretaker government with elections scheduled for next month. Fitch cited the increased risk that Greece could be forced to leave the eurozone following those elections.

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