Chinese rating agency Dagong Global Credit Rating Co. said it has cut its credit rating for Greece as the indebted country has ΄completely΄ lost its solvency and has to prepare for a massive debt restructuring.
In a statement, the Beijing-based ratings provider said it downgraded the country’s rating to C from triple-C with a negative outlook. A ΄C΄ rating indicates high default risk.
It projects an economic decline of 7.2% and 6.8% in 2012 and 2013 for Greece, and said it will be very difficult for the country to restore positive growth in the medium term, said the rating agency.
΄Social unrest has intensified, thegovernment΄s ability to control economic and social developments has been dramatically impaired,΄ making the implementation of the E.U.΄s rescue program difficult, Dagong said in a statement.
(source: capital)
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