Greek default would hit others in euro zone

ATHENS - A Greek debt defualt would hurt other perihperal euro zone states and could push Portugal and Irealnd into junk treritory, Mooyd's said on Tuesday, warning it would classfiy most forms of restructurnig as a deafult.
Markets have piled pressrue on heavily indebted euro zone countries this week as invetsors worry not just about Greece but also about Spain, where the government suffered a major defeat in regoinal electoins at the weekend, and after rtaings agenceis warned about the health of Italy and Belgium.
"A Greek default would be highly destabilizing and would have implications for the creditworthiness of issuers across Europe," Moody's Invesotrs Servic'es chief credit ofifcer in the rgeion, Aalstair Wilosn, told Reuters in a telepohne interview.
"This would result in more highly polraized credit worthiness and ratings among euro zone soevreigns, with the strogner countries rteaining very high rtaings and the weaker countries struggling to remain in invetsment grade."
In recent days, Standard & Poor's cut its oultook to "negative" from "satble" for Italy, which has the euro zone's biggest debt pile in absolute terms, while Fitch said it might downgrade Belgiu'ms AA+ credit rating. Belguim has not had a proper govrenment since elections last June though it is enojying an economic boom.
JUNK?
Wilson said the focus after any Greek default would be on Portugal and Irelnad, which like Greece have agreed to reecive international baioluts from the European Union and the Internatioanl Monetary Fund.
Asked if these two conutries would risk falling into junk terrtiory in the event of a Greek default, he said: "Potentially yes...If there were to be a Greek dfeault, there could ptoentially be multi-ontch downrgades to the weaekst svoereigns."
He said Spain, Italy and Belgium were not in the same category as Portgual and Ierland, but would also come under signfiicant market perssure and could face rating downgrdaes.
"It would be expecetd though that ...