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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 20,894.83 89.99 0.43%
Nasdaq 6,133.62 49.91 0.82%
S&P 500 2,394.02 12.29 0.52%
Treasuries 2.25 0.01 0.40%
Data as of 5:01am ET
Company Price Change % Change
Advanced Micro Devic... 11.04 -0.37 -3.24%
Bank of America Corp... 23.04 -0.01 -0.04%
Ford Motor Co 11.10 0.23 2.12%
Cisco Systems Inc 31.59 0.38 1.22%
General Electric Co 28.18 0.13 0.46%
Data as of May 22
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