S&P cuts Greece rating after referendum called
June 30, 2015  02:29
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Standard & Poor's downgraded Greece's credit rating deeper into junk territory today, saying the government's decision to hold a referendum on creditor proposals brought it closer to default. 

"We interpret Greece's decision to hold a referendum on official creditors' loan proposals as a further indication that the Tsipras government will prioritize domestic politics over financial and economic stability, commercial debt payments, and eurozone membership," said S&P. 

It cut Greece's already deeply-junk rating to 'CCC-' from 'CCC'.

Absent unforeseeable favorable changes in Greece's circumstances, "a commercial default is inevitable within the next six months," the ratings firm said. In a rating downgrade earlier in June, S&P saw the likelihood of a commercial default within the next 12 months. 

S&P said that the inability of Prime Minister Alexis Tsipras's government to agree with its official creditors on a loan program was a sign that Athens would likely miss its payment obligations due on June 30, including the 1.5 billion euros (USD 1.7 billion) to the International Monetary Fund. 
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