S&P downgrades Greece credit rating

Rating cut due to Greece’s liquidity issues and difficulties in reaching agreement with creditors

Rating cut due to Greece’s liquidity issues and difficulties in reaching agreement with creditors

ANKARA - Standard & Poor's downgraded Greece’s credit rating from B to B-minus Friday, while confirming a “negative” outlook, citing the country’s lack of cash resources.

“The downgrade reflects our view that the liquidity constraints weighing on Greece's banks and its economy have narrowed the timeframe during which the new government can reach an agreement on a financing program with its official creditors,” a statement on S&P’s website said.

Standard and Poor’s also confirmed Greece’s negative outlook. “The long and short-term ratings on Greece remain on CreditWatch with negative implications,” the statement added.

The grading is considered as “junk level,” interpreted as high risk and low confidence for investment.

The newly-formed Syriza government in Athens has shrugged off pressure from the European Central Bank as it seeks to renegotiate the terms of Greece’s debt burden.

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