S&P DOWNGRADES GREECE, PUTS GREXIT ODDS AT 50%, WARNS DEFAULT COULD HAPPEN IN 6 MONTHS

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Alexis Tsipras time watch

REUTERS/Alkis Konstantinidis

Greek Prime Minister Alexis Tsipras

S&P just downgraded Greece's credit rating to CCC- from CCC.

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This follows Greek Prime Minister Alexis Tsipras' announcement that the country would hold a referendum to vote on whether or not they should accept new terms from creditors in order to receive desperately needed bailout funding.

"We interpret Greece's decision to hold a referendum on official
creditors' loan proposals as a further indication that the Tsipras
government will prioritize domestic politics over financial and economic stability, commercial debt payments, and eurozone membership," S&P said.

"In our view, the probability of Greece exiting the eurozone is now about 50%," they continued. "Also, we believe that, absent unanticipated favorable changes in Greece's circumstances, a commercial default is inevitable within the next six months."

Just three weeks ago, the credit rating agency cut the country's rating to CCC from CCC+ while warning its outlook was negative.

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