Greece to have T-bill auction after rating cut

[March 08, 2011]  ATHENS, Greece (AP) -- Greece is planning to have a euro1.25 billion ($1.75 billion) treasury bill auction, a day after its debt rating was downgraded once again.

The auction of 26-week treasury bills is to due take place later Tuesday.

On Monday, Moody's slashed Greece's junk rating by three notches to B1 from Ba1, prompting a furious riposte from the Greek government.

Greece's Socialist government is hoping to renegotiate the terms of last May's euro110 billion ($154 billion) bailout deal with European countries and the International Monetary Fund.

Prime Minister George Papandreou began successive meetings with opposition leaders Tuesday ahead of a European Union summit on March 25.

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THIS IS A BREAKING NEWS UPDATE.
AP's earlier story is below.

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ATHENS, Greece (AP) -- Greece is planning to hold a euro1.25 billion ($1.75its debt grade further below junk status billion) treasury bill auction, a day after its debt rating was downgraded once again.

The auction of 26-week treasury bills is to due take place later Tuesday.

On Monday, Moody's slashed Greece's junk rating by three notches to B1 from Ba1, prompting a furious riposte from the Greek government.

Greece's Socialist government is hoping to renegotiate the terms of last May's euro110 billion ($154 billion) bailout deal with European countries and the International Monetary Fund.

Prime Minister George Papandreou began successive meetings with opposition leaders Tuesday ahead of a European Union summit on March 25.

[Associated Press]

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