S&P cuts Greece

Standard & Poor's said that it lowered the long-term sovereign credit ratings on Greece to CCC from B.

The agency also said it affirmed its short-term rating at C. The ratings were removed from CreditWatch. The outlook is negative.

The 4 recovery rating for Greece remains unchanged, indicating 30% to 50% recovery upon default, S&P said, and the AAA transfer and convertibility assessment for Greece also remains unchanged.

The downgrade reflects a view that there is a significantly higher likelihood of one or more defaults linked to efforts by official creditors to close an emerging financing gap in Greece, the agency said.

This financing gap has emerged in part because Greece's access to market financing in 2012 and possibly beyond is unlikely to materialize, S&P said.

This lack of access creates a gap between committed official financing and Greece's projected financing requirements, the agency added.

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