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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

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Index Last Change % Change
Dow 20,775.60 32.60 0.16%
Nasdaq 5,860.63 -5.32 -0.09%
S&P 500 2,362.82 -2.56 -0.11%
Treasuries 2.42 -0.01 -0.37%
Data as of 5:27pm ET
Company Price Change % Change
Bank of America Corp... 24.79 0.01 0.04%
Chesapeake Energy Co... 5.92 -0.16 -2.63%
Freeport-McMoRan Inc... 13.73 -0.40 -2.83%
General Electric Co 30.33 -0.19 -0.62%
Intel Corp 36.07 -0.45 -1.23%
Data as of 4:03pm ET
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