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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 18,162.08 -99.37 -0.54%
Nasdaq 5,274.62 -31.13 -0.59%
S&P 500 2,155.17 -9.52 -0.44%
Treasuries 1.59 -0.02 -1.36%
Data as of 10:51am ET
Company Price Change % Change
Bank of America Corp... 15.41 -0.11 -0.71%
Apple Inc 113.19 0.48 0.43%
Chesapeake Energy Co... 6.79 0.16 2.41%
Ford Motor Co 12.04 -0.13 -1.07%
Micron Technology In... 17.48 0.00 0.00%
Data as of 10:37am ET
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