Moody's international rating agency has downgraded the Greek capital Athens' rating to Caa3 with a Developing outlook from Caa1 with a Negative outlook, the agency said on Wednesday.
The cut followed a downgrade of Greece's sovereign rating to Ca from Caa1 in late July and is due to the capital's close financial connection with the rest of the country. The agency said that despite the crisis in Greece, the city of Athens did not face default and could still service its debt.
Greece is in a deep economic turmoil with a debt to gross domestic product ratio nearing 160 percent, Europe's highest.
A new bailout worth 109 billion euros ($155 billion) last month from the EU followed the 110 billion euros already granted to Greece by the union in May last year.
Moody's lowered the country's rating as it believes that the new foreign financial supportpackage will lead to considerable losses by private creditors.
