Greece’s National Bank and four other Greek banks have had their credit ratings cut by an international credit rating agency.
Fitch, one of the three biggest credit rating firms, downgraded the beleaguered country’s debt ratings. Ratings on National Bank of Greece, the country’s biggest, and Alpha, Eurobank, and Piraeus Bank were reduced one level from BBB to BBB-, while ATEbank was cut from BBB- to BB+. BBB- is the lowest investment grade rating.
The move makes it harder for Greece to borrow money to manage its growing debt. Over the past days, interest rates on Greek bonds have risen to over seven percent, more than twice as much as the rate most other EU countries have to pay.
Following crisis talks, countries using the euro have repeated they are ready to help Greece handle its financial crisis with an emergency plan that can be activated at any time. The plan’s terms and conditions are nearly identical to those applied by the International Monetary Fund.
The EU plan, adopted despite stiff opposition by Germany, aims to reassure concerns international financial markets have regarding Greece’s prospects for economic recovery.
