S&P downgrades Greece’s credit rating

Standard & Poor has downgraded Greece's long-term credit rating from BB-minus to B, increasing fears over the future of the eurozone. The new rating pushes the Greek government's bonds into junk territory and makes it harder for it to raise the money it needs to pay off bailout loans from the European Union.

The move came as the EU suggested it was considering easing the financial pressure on Greece and Ireland by cutting interest rates on the loans it gave to the two countries. However, it remains against the idea of a debt restructuring.

News of the downgrade affected the euro on currency markets, and pushed European shares down. "The Greek situation is like a slow motion car crash," Jeremy Stretch of CIBC World Markets told the Telegraph.

The Mediterranean country needs to raise around €22bn next year to meet repayments that are not covered by the current rescue package. Last year it was given  €110bn as part of a bailout.

Read a full report in the Telegraph. ·