S&P Downgrades Greece's Credit Rating

NEW YORK, Jul. 28 -- The rating agency Standard & Poor ' s on Wednesday cut Greece's sovereign credit rating by one notch to CC from CCC, saying the European Union's latest bailout plan would put the country into "selective default."

Eurozone leaders agreed on a 109 billion euro or 158 billion U. S. dollar package for Greece Thursday, a latest move to address the country's debt problems. However, S&P said the plan appeared unfavorable to investors and warned that a selective default might happen. It also put the outlook on the Greece rating to negative.

S&P's move came just two days after downgrade action by another rating agency Moody's, which also worried the possibility of Greek debt default. On Monday, Moody's cut Greece's credit rating by three notches to Ca, just one notch above default.