Greece cut again.

No big surprise with Greece in a game of chicken with the IMF and EU over labor and pension reforms. Both sides refuse to budge and the IMF has the money.

  • "Without deep economic reform or further relief, we expect Greece's debt and other financial commitments will be unsustainable."
  • Outlook for Greece's "full year economic growth is highly uncertain"
  • Greece is negative, given the risk of further worsening in liquidity for the sovereign, the banks and the economy
  • Expects govt will manage to continue to pay salaries, pensions in cash despite weakening fiscal receipts
  • Greece increasingly depends on favorable business, financial, and economic conditions to meet its financial commitments