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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 21,394.76 -2.53 -0.01%
Nasdaq 6,265.25 28.56 0.46%
S&P 500 2,438.30 3.80 0.16%
Treasuries 2.14 -0.01 -0.42%
Data as of 12:04am ET
Company Price Change % Change
Advanced Micro Devic... 14.17 -0.21 -1.46%
Bank of America Corp... 22.82 -0.11 -0.48%
Micron Technology In... 31.73 -0.16 -0.50%
Ford Motor Co 11.04 -0.09 -0.81%
Oracle Corp 50.95 0.65 1.29%
Data as of Jun 23
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