Moody's cuts Athens

Moody's Investors Service said it downgraded the city of Athens' issuer rating to Caa3 from Caa1 and changed the outlook to developing from negative.

The action follows the downgrade on Greece's sovereign rating to Ca, with a developing outlook, and recognizes the city's strong financial and operational linkages with its sovereign, according to the agency.

The downgrade reflects the European Union support program and debt-exchange proposals from major financial institutions, which implies that private creditors will incur substantial economic losses on their Greek government-debt holdings, the agency noted.

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