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S&P downgrades Greek debt to junk status

By Chavon Sutton, staff reporter


NEW YORK (CNNMoney.com) -- Standard and Poor's downgraded the sovereign debt ratings for both Greece and Portugal on Tuesday, citing weak "macroeconomic structures," with the Greek debt lowered to junk status.

Greece's long-term sovereign debt rating was reduced to a rating of "BB+" from "BBB+." The short-term rating was lowered to "B" from "A-2."

It was the second downgrade in as many weeks for the debt-laden nation.

Separately, Portugal's rating was reduced to "A-" from "A+," which is still considered investment grade.

The downgrades came after Greece last week announced it would finally tap a European Union-International Monetary Fund sponsored $53 billion bailout plan.

The news sent U.S. stock markets down sharply, as investor fears of a debt crisis contagion in Europe spread.  To top of page

Index Last Change % Change
Dow 21,674.51 -76.22 -0.35%
Nasdaq 6,216.53 -5.39 -0.09%
S&P 500 2,425.55 -4.46 -0.18%
Treasuries 2.19 -0.00 -0.23%
Data as of 11:08am ET
Company Price Change % Change
Bank of America Corp... 23.62 -0.02 -0.08%
Ford Motor Co 10.56 -0.08 -0.75%
Advanced Micro Devic... 12.37 0.03 0.24%
Foot Locker Inc 34.38 -13.32 -27.92%
Chesapeake Energy Co... 3.96 0.08 2.06%
Data as of Aug 18
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