Not quite sure how it’s possible to downgrade Greek credit even further, but apparently it is. This a hot off the press S&P release:
• Following delays in implementing budgetary consolidation measures and a worsening Greek economy, we believe Greece is likely to require additional financing for 2012 under the EU/International Monetary Fund (IMF) program (EU/IMF Program).
• We consider the Greek government will find it difficult to make further cuts to meet the conditions to secure the next disbursement of the next tranche of funding from the EU/IMF Program.
• We are revising the outlook on the long-term ratings on Greece to negative, reflecting the possibility of a downgrade if Greece fails to secure the next disbursement of the EU/IMF Program.
• We are affirming the ‘CCC/C’ foreign and local currency credit ratings on Greece.

Rating Action
On Aug. 7, 2012, Standard & Poor’s Ratings Services revised the outlook on the long-term sovereign credit rating on the Hellenic Republic (Greece) to negative from stable. At the same time, we affirmed the ‘CCC/C’ long- and short-term foreign and local currency sovereign credit ratings

Not entirely in agreement with the Troika, then.

How can that be?