The most recent bailout was panned from the start and it's not improving. What a waste.
S&P warned that it would cut Greece's credit rating to D, the lowest possible, if the debt rollover plan proposed by France's banking sector is implemented. The decision, which echoes the views of other rating agencies in recent days, casts a cloud over the eurozone as policymakers struggle to devise a second bailout for Greece.
The euro fell against the dollar, losing around half a cent to $1.4513, after S&P released its analysis.
Under the Fédération Bancaire Française (FBF) plan, banks would invest some €30bn of maturing Greek debt in new bonds issued by Athens, which would not mature for up to 30 years. These securities would have an interest rate linked to Greece's GDP, and their sale would be restricted. The proposal won support last week from Germany, which is keen for private creditors to share the cost of a new rescue package worth an estimated €110bn (£100bn).
