S&P slashes Greece rating as EU mulls new help

PARIS: Standard and Poor's (S&P) slashed its rating for Greeceyesterday, evoking a rising probability of a debt restructuring, as sources said the European Union (EU) is mulling providing more help to the struggling eurozone member.

The S&P ratings downgrade came amid increasing concern in the markets that despite its 110-billion-euro (US$160bil) bailout by the International Monetary Fund and EU last year Greece will not be able to keep on top of it debt that is more than a year-and-a-half of its entire economic output. Athens immediately hit back at S&P, saying its downgrade “placed the agency's reliability in doubt“.