23 Apr 2010

Greek rating cut

10:11 am on 23 April 2010

Moody's has cut Greece's sovereign rating to A3 and says further downgrades may be on the cards.

The move was prompted by revisions to Greece's 2009 budget deficit, from 12.7% to 13.6% of gross domestic product.

Moody's says Greece may end up paying a lot more for its borrowing than was initially thought.

Yields on 10 year Greek government bonds are now more than 9% - 5 percentage points higher than Germany.

Officials from the European Union and IMF are in Athens to put the final touches on a $US61 billion rescue package that is yet to be activated.