Radio New Zealand - Te Reo Irirangi o Aotearoa

Greek credit rating cut again

Updated at 5:44 am on 4 March 2012

Moody's has cut Greece's credit rating again, citing a risk of default despite a recent debt write-off deal.

The rating agency cut Greece's rating from Ca to C, the lowest level on its scale.

Moody's acknowledged on Friday that the 107 billion euros ($US141.3 billion) deal was necessary to help stabilise Greece, but said the risk of a default remains high.

The BBC reports private investors are writing off much of the 206 billion euros they hold in Greek bonds, incurring losses of more than 70%.

Fitch also lowered its rating for Greek government debt on 22 February, from CCC to C.

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