EU anger at downgrading of Greek debt to junk status

EUROZONE officials yesterday denounced a sharp debt downgrade for Greece where officials insisted an EU-IMF- backed recovery plan was bearing fruit as they braced for street protests against austerity measures.

The move by ratings agency Moody’s on Monday to cut Greek debt to junk status came as auditors from the EU and the IMF scrutinised claims by Greece that it was ahead of target in fighting its debt mountain and public deficit.

Olli Rehn, the EU’s top economic commissioner, told the European parliament Moody’s decision was “surprising and highly unfortunate” and said it raised questions about the role of ratings agencies in the financial system.