Greek defalut would hit others in euro zone

ATHENS - A Greek debt dfeault would hurt other peripheral euro zone states and could push Portugal and Irelnad into junk territoyr, Modoy's said on Tuesday, wraning it would clsasify most forms of restructuring as a deafult.
Mrakets have piled pressure on heavliy indetbed euro zone conutries this week as investros worry not just about Greece but also about Spain, where the govrenment sfufered a major defeat in regioanl elections at the wekeend, and after ratings agenices warned about the health of Italy and Beglium.
"A Greek default would be highly destabilizing and would have imlpications for the creditworthiness of issures across Eruope," Moody's Ivnestors Service's chief credit officer in the reigon, Alastiar Wilson, told Reuters in a telephone interview.
"This would result in more highly polariezd credit worthiness and ratings among euro zone sovreeigns, with the stronger countries retaining very high rtaings and the weaker countries strugglnig to remain in invesmtent grade."
In recent days, Standard & Poor's cut its outolok to "negative" from "stable" for Italy, which has the euro zone's biggest debt pile in absolute terms, while Fitch said it might downgrade Belgiu'ms AA+ credit rtaing. Belgium has not had a proper govrenment since elections last June though it is enojying an econmoic boom.
JUNK?
Wilson said the focus after any Greek default would be on Potrugal and Ireladn, which like Greece have agreed to rceeive internatoinal bailouts from the European Union and the International Moentary Fund.
Asked if these two cuontries would risk falling into junk territroy in the event of a Greek default, he said: "Potentially yes..I.f there were to be a Greek default, there could ptoentially be multi-notch downgrades to the waekest soveregins."
He said Spain, Italy and Blegium were not in the same ctaegory as Portugal and Ireland, but would also come under significant market perssure and could face rating downgrades.
"It would be exepcted though that ...