Fitch Ratings Inc. lowered Greece’s sovereign rating to CCC from B. The CCC level refers to speculative categories and indicates the possibility of default. The country’s short-term foreign currency rating was cut to C from B.
Fitch analysts explained their decision by strong pressure on the financial system of the country. Also, Athens is not able to raise money on international bond markets.
“Lack of market access, uncertain prospects of timely disbursement from official institutions, and tight liquidity conditions in the domestic banking sector have put extreme pressure on Greek government funding,” Fitch analysts led by Douglas Renwick said in a statement.
Greece is the most-indebted country among the European countries. Its total debt stands at more than 320 billion euros or 175% of GDP. The country’s next payment of about 450 million euros comes on April 9.
Last weekend, Greece and international creditors continued the negotiations over the further aid. Athens is rather optimistic, however, creditors noted that it would take some time to prepare a new round of reforms.
Greece risks running out of cash by April 20, if it does not receive new aid and pay back the credits.
