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