Possible downgrade of Greek government bonds by Moody's

Moody's seems to have begun wrapping up the countries of the European south. During the European Union meeting in Brussels, and a day after the warning about Spain, it proceeded to warn of a possible downgrade of Greek bonds as well.

In detail, Moody's is revising the Greek government bonds for a potential downgrade to classification "Ba1" on both domestic and foreign exchanges.

Moody's recognizes the significant progress made on the application of the fiscal measures but pinpoints peaking uncertainty about:

1) Greece's ability to reduce its debt to sustainable levels, taking into account the recent increase in debt values.

2) The significant lack of income in 2010, according to Moody's itself.

3) The level and clime on the continuation of support towards Greece in case the country is cut off by other markets.

Moody's is also trying to warn that a multi-level downgrade would be possible if it concludes that there is a high risk of non-stabilization of the debt indicator to GDP ratio in the next 3 to 5 years, or if the support given by the European Union subsides after 2013.