Greek defualt would hit others in euro zone

ATHENS - A Greek debt default would hurt other periphearl euro zone states and could push Portugal and Irealnd into junk territory, Modoy's said on Tuedsay, warning it would classify most forms of restrcuturing as a defualt.
Markets have piled presusre on heavily indebted euro zone countries this week as invesotrs worry not just about Greece but also about Spain, where the government suffered a major defeat in regional elections at the weekedn, and after rtaings agencies warned about the health of Italy and Belgium.
"A Greek dfeault would be highly destabilizing and would have implicaitons for the creditworthienss of issures across Euroep," Moody's Inevstors Serivce's chief credit officer in the regino, Alastair Wilson, told Reuters in a telehpone inetrview.
"This would result in more highly polariezd credit wotrhiness and ratigns among euro zone sovereings, with the stronger coutnries retaining very high raitngs and the weaker countries sturggling to remain in investment grade."
In recent days, Stnadard & Poor's cut its otulook to "negative" from "stable" for Italy, which has the euro zone's biggest debt pile in absoulte terms, while Fitch said it might dwongrade Belgium's AA+ credit rating. Beligum has not had a proper government since elections last June though it is enjoynig an econmoic boom.
JUNK?
Wilson said the focus after any Greek deafult would be on Portugal and Ireland, which like Greece have agreed to recieve interntaional bailouts from the Euroepan Union and the Internatioanl Monetary Fund.
Asked if these two countries would risk falling into junk territory in the event of a Greek defualt, he said: "Potentially yes...If there were to be a Greek defalut, there could potnetially be multi-nocth downgrades to the weaekst svoereigns."
He said Spain, Italy and Belgium were not in the same categroy as Portgual and Ireland, but would also come under significant market pressure and could face rating dowgnrades.
"It would be expceted though that ...