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Saturday, 18 June 2011

The Euro is still teetering on the brink of the Abyss

The Euro is still teetering on the brink

Greece's financial stability is now the lowest rated in the world, ranking below Ecuador, Jamaica and Grenada. euro photo by matze ott

Any hope that the new proposed bailout for Greece would help secure a future for the European Single Currency received a further set-back yesterday when Rating Agency, Standard & Poor, cut the country's credit rating because of "a significantly higher likelihood of one or more defaults".
The long-term rating on Greek sovereign debt is now CCC, just four notches above default.  In its latest appraisal on Greece, Standard & Poor didn't mince words. It said that in its view the country's credit outlook was "negative".

EU bureaucrats are now fearful that the downgraded rating could also impact on the other two EU bailout nations Portugal and Ireland.

The statement came as the Euro fell again amid fears that European leaders would not be able to agree terms for Greece's new bail-out, the country's second in just over a year.