14th July 2011
Credit rating agency Fitch yesterday indicated it expected the Greek government to default on its loans, cutting the country's rating from B+ to CCC.
David Cameron told European leaders to act immediately to prop up the ailing country amid fears that the crisis stalking the single currency will drag down Britain, says This is Money.
Two of the other ‘big three' credit rating agencies, Moody's and Standard & Poor's, downgraded the country's bonds to a similar level last month.
Fitch said in a statement: ‘Today's rating downgrade reflects the absence of a new, fully-funded and credible EU-IMF programme for Greece, coupled with … Greece's weakening macroeconomic outlook.'
The move came because of the absence of a new European Union-International Monetary Fund programme for Greece and growing uncertainty of the role private investors would play in any bail-out, reports the Daily Telegraph.
The IMF said that Greece needs an additional €71bn in European Union aid and €33bn from private creditors to weather its debt crisis.
To receive our free email newsletter sign up here.