{"id":675332,"date":"2010-02-25T05:23:00","date_gmt":"2010-02-25T10:23:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/now-moodys-threatens-to-downgrade-greece-2010-2"},"modified":"2010-02-25T05:23:00","modified_gmt":"2010-02-25T10:23:00","slug":"moodys-warns-greece-to-get-its-handout-mobs-under-control-or-be-slammed-with-a-multi-notch-downgrade","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/675332","title":{"rendered":"Moody’s Warns Greece To Get Its Handout Mobs Under Control Or Be Slammed With A Multi-Notch Downgrade"},"content":{"rendered":"

\"greece<\/p>\n

After Standard and Poor’s threatened to downgrade Greece’s BBB+ rating as much as two notices on Wednesday, now Moody’s is coming out with its own threat.<\/p>\n

They simply don’t appear confident that Greece can do as it says when it comes to fiscal austerity (which simply means living within their means).<\/p>\n

Reuters:<\/a><\/p>\n

“We have to look at the facts and whether the government of Greece is going to do what it has promised to do,” he said.<\/p>\n

…<\/p>\n

“Or if we see, based on evidence, that there is a deviation from the plan, we will change our rating accordingly. So a small deviation would lead to a small downgrade and a large deviation — which we think is unlikely — would lead to a large downgrade,” Cailleteau said.<\/p>\n

…<\/p>\n

Moody’s said earlier this month that debt-stricken Greece could face the risk of a multi-notch rating cut if its public finances remained unsustainable. Moody’s currently has Greece’s long-term debt rating at A2 with a negative outlook.<\/p>\n

Greece needs to convince markets that it can get its fiscal act together and control its mobs of handout-seekers if it wants to avoid crushing crushing credit downgrades across the board.<\/p>\n

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