With Greece's fiscal situation seemingly deteriorating every day, and little hope of any substantive deal on the horizon, Standard & Poor's just slashed the country's credit rating. That S&P downgrade sends Athens even further into junk territory, down from B- to CCC+. Here's what S&P had to say: The downgrade reflects our view that Greece's solvency hinges increasingly on favorable business, financial, and economic conditions. In our view, these conditions have worsened due to the uncertainty stemming from the prolonged negotiations between the almost three-month-old Greek government and its official creditors. The outlook for full-year economic growth is highly uncertain. We estimate the Greek economy has contracted by close to 1% over the past six months despite a weaker euro and lower oil prices. In our opinion, economic prospects could deteriorate further unless talks between Greece and its creditors conclude soon. Which doesn't sound particularly healthy. The country is struggling to negotiate a bailout deal with its European creditors, and things are not looking good. But even if Greece does meet the conditions its lenders want and get enough to please the far-left government and its supporters, it'll be back in this situation later in the summer — the bailout will only last for three or four months.Join the conversation about this story » NOW WATCH: 9 animated maps that will change the way you see the world
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