Fitch cuts Greece’s rating

May 18th, 2012 - 1:49 pm ICT by IANS  

London, May 18 (IANS) International ratings agency Fitch has announced cutting Greece’s credit rating from B- to CCC, citing the “heightened risk” that Greece could leave the euro zone.

Recent Greek parliamentary elections and subsequent failure to form a government underscores the lack of public and political support for the austerity plans in Greece, Fitch said Thursday in a statement on its website, explaining the downgrade on the long-term foreign and local currency Issuer Default Ratings (IDRs).

Greece would likely have to exit from the euro zone if the country failed again to form a government after the new general elections June 17, reported Xinhua.

Fitch forecast a Greek exit would result in widespread default on private sector as well as sovereign euro-denominated obligations.

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