S&P 'set to downgrade Greece' after debt talks finish

Ratings Agency Standard and Poors is apparently set to downgrade Greece to the level of "selective default" once its debt negotiations conclude.

An agency spokesperson has told Reuters that it won't "necessarily" destroy the credibility of the European Union.

Talks between bondholders and the Greek Government are continuing to try to write down some of the country's debt.

It comes as the EU Commissioner Olli Rehn said there will be a moderate recession across Europe in the first half of 2012, with "several factors" pointing towards a postponement of economic recovery until the second half of the year.