Greece Debt Crisis in the Euro Zone
Today,Economic News about Greece Debt Crisis make rating agency Standard and Poor’s downgraded the sovereign debt ratings of Greece to junk status and lowered Portugal’s investment grade status.from CNN News that S&P also downgraded its investment grade rating of Spain’s long-term debt.Worries about Greece have abated recently as European officials seem to be nearing agreement on a rescue package for the debt-laden nation.
Greece’s economy is one of the smaller ones in the euro zone, Hogan noted, so its debt rating is not as much of a concern as that of a larger country like Spain or Italy. Even though Spain was downgraded Wednesday, the move was not major because it remains investment grade.
As long as a country’s debt is investment grade — which means it can still be used as collateral any downgrades are considered merely “warning shots,” Hogan said. Unless a major economy’s debt is downgraded to junk status, euro zone concern should remain contained, he added.
