S&P - Greek govt likely default on commercial debt within next 12 months

Comments from S&P on Greece:

S&P have lowered Greece's sovereign credit rating to CCC from CCC+

• Greece delaying payment to IMF on June 5, appears to demonstrate government prioritizing pension,domestic spending over debt service obligations
• S&P says "as its liquidity position continues to deteriorate, Greece appears to be prioritizing other spending items over debt servicing"
• Greece's outlook is negative, given the risk of a further worsening of liquidity for the sovereign, its banks, and the economy
• "In our view, without a turnaround in the trajectory of nominal GDP and deep public-sector reform, Greece's debt is unsustainable"
• Says absence of deal between Greece and official creditors, "Greek govt will likely default on its commercial debt within the next 12 months"