Greek government bonds downgraded

International credit ratings agency Moody’s has downgraded Greek government bonds four notches to what has been described as junk status.



The agency says there is still considerable uncertainty surrounding the impact of measures introduced to cut the country\'s high budget deficit.



Greece is looking to slash its deficit from 14 per cent of GDP to 3 per cent by 2014.



However, Moody\'s says the outlook on Greece\'s rating is now stable, and that it will likely remain unchanged over the next 12 to 18 months.



Meanwhile, despite the downgrade from A3 to Ba1, the agency says the risk of Greece defaulting on its debt is low.



In April, Standard & Poor\'s, one of the three main international credit rating agencies alongside Moody\'s and Fitch, also downgraded Greek government debt to junk status.