S&P Downgrades Greece Outlook on Coronavirus Fears

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Ratings agency Standard & Poor's has downgraded its outlook for Greece on forecasts the economy will plunge into recession on the fallout of the coronavirus pandemic, while maintaining the country's credit rating.

S&P forecast the Greek economy would contract by around 9 percent in 2020 on "uncertainty about the duration of the pandemic and resulting economic crisis", revising its outlook from "positive" to "stable".

The agency reaffirmed its sovereign credit rating for the country at "BB-/B" and added it expected its economy to rebound in 2021.

After a nearly decade-long debt crisis and the loss of almost a quarter of GDP, the Mediterranean country had expected growth of at least 2.4 percent for 2020.

Prime Minister Kyriakos Mitsotakis recently warned of a "deep" recession due to the impact of the Covid-19 pandemic, before a recovery in 2021.

His finance minister has predicted a recession of "up to four percent" of GDP.

Last week Moody's downgraded its outlook for Greek banks from "positive" to "stable". 

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