Greece has become the world’s lowest rated country after Standard and Poor’s cut three notches off its credit worthiness. It puts the cash strapped country below Ecuador and Jamaica.
It means that despite attempts by Prime Minister George Papandreou to arrest his country’s economic implosion, Greece could default on its debt.
It is the latest blow for the country’s Socialist government which is scrambling to present a new austerity package.
But the first round of measures have not gone down well among ordinary Greeks who have protested daily for several weeks.
With the IMF and EU working on a second funding deal barely a year after Athens was granted a first multi-billion-euro aid package, it looks like more cuts will trigger yet more unrest.