Greece in new downgrade by S&P for "unsustainable" commitments

Ratings agency S&P has downgraded Greece's credit rating again, saying it expects its debt and other financial commitments will be "unsustainable".

It has dropped long and short-term sovereign credit ratings to CCC+/C from B-/B and says its outlook is negative.

Markets use sovereign ratings to work out the interest rate at which investors should lend to a country.

S&P says the economy has shrunk by 1% in six months despite the twin benefits of a lower oil price and a weak euro.

It says: "Greece's solvency hinges increasingly on favorable business, financial, and economic conditions... In our view, these conditions have worsened."

It says the government finances, which appeared to be improving slightly last year, have been dented by weaker economic activity and rising arrears on taxes.

(Πηγή: www.bbc.com)