Standard & Poor's has revised Greece's outlook to negative, saying the debt-ridden country could need more help from its international creditors.
'We believe Greece is likely to require additional financing for 2012 under the EU/IMF programme," the rating agency said last night.
It said this follows delays in implementing budgetary consolidation measures and a worsening Greek economy.
"We are revising the outlook on the long-term ratings on Greece to negative, reflecting the possibility of a downgrade if Greece fails to secure the next disbursement of the programme," S&P added.
Greece is behind on targets agreed under a €130 billion financial rescue package. The resumption of bailout funding hinges on a progress report by the EU, IMF and European Central Bank inspectors, which is not expected before September.
"We see the likelihood of shortfalls, owing to election-related delays in the implementation of budgetary consolidation measures for the current year, as well as the worsening trajectory of the Greek economy," S&P said.
The ratings agency said it sees the Greek economy shrinking by 10-11%, cumulatively, during 2012 and 2013.
S&P also affirmed Greece's CCC rating, which is already well in speculative territory. Moody's Investors Service rates Greece C, and Fitch rates the country CCC.
