The European Union executive on Thursday lashed out at credit rating agencies for the third time in little over a week, in the wake of Fitch's decision to further downgrade Greek sovereign debt.
On Wednesday, the agency dropped Greece's status from “B+” to “CCC,” citing concerns about the EU and the International Monetary Fund (IMF)'s dithering over a second bailout package for the country, needed to keep it solvent beyond 2012.
“We just don't understand this decision at this time,” European Commission spokeswoman Pia Ahrenkilde said, noting that the EU and the IMF had just authorised a 12-billion-euro (17-billion-dollar) installment from Greece's 110-billion euro bailout from last year.
EU commission president Jose Manuel Barroso had lashed out against fellow credit rating agency Moody's on Wednesday for downgrading Ireland, and on July 6 for downgrading Portugal.
Ahrenkilde said that the statement issued by eurozone finance ministers on Monday “clearly sets out where we stand on Greece and the further work which is ongoing with great intensity.”
Ministers signaled they were ready to reduce Greece's debt burden by cutting the interest rate and lengthening the maturity of its bailout loans, but they did not adopt any specific measure.
An EU summit is expected to be called over the coming days to break the deadlock, mainly linked to arguments over the extent to which private lenders should contribute to Greece's new rescue package. - Sapa-dpa