S&P Downgrades Greece Further into Junk

Standard and Poor’s cut Greece’s rating to B from BB-, pulling it further into junk territory over concerns that a debt restructuring is increasingly likely. “In our view, there is increased risk that Greece will take steps to restructure the terms of its commercial debt, including its previously-issued government bonds,” the agency said in a statement, warning that more downgrades could come. It said its projections suggest that principal reductions of 50% or more could be necessary to reestablish Greece’s debt burden to a sustainable level.