S&P cuts Greek outlook further

RATINGS agency Standard & Poor’s (S&P) revised it outlook on Greece to negative last night and said it would need more funds to prevent a default.

S&P, which has a CCC rating on Greek sovereign debt, said the change reflected “the possibility of a downgrade” if Greece misses its targets and thus fails to secure the next tranche of loans from the EU and International Monetary Fund.

It added that it sees the Greek economy shrinking by around 11 per cent over the next year.