NEW YORK — Moody’s Investors Service cut Greece’s credit rating Monday after concluding that the euro-zone bailout plan announced last week will require private-sector holders of Greek debt to take credit losses.
The agency said it downgraded Greece’s debt ratings from CAA1, already deep in junk-bond territory, to CA — one step above default — “to reflect the expected loss implied by the proposed debt exchanges.” It said it would reassess that rating once the deal has been completed.
Moody’s offered a generally positive assessment of the plan agreed to by European leaders Thursday, saying it “benefits all euro-area sovereigns by containing the contagion risk that would likely have followed a disorderly payment default on existing Greek debt.” The New York Times
