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Many of Greece’s Creditors Will Have Losses, Meaning Default, Moody’s Says

Greece’s creditors will suffer losses as the nation struggles to pay its debts, Moody’s Investors Service said in a weekly report.

“It is now virtually certain that many of Greece’s private-sector creditors will experience credit losses that we define as a default,” Alastair Wilson and Bart Oosterveld, both managing directors, wrote in the report that Moody’s sent by e- mail today.

Greece’s long-term foreign currency debt was cut three steps to Ca from Caa1 earlier today by the rating company.

The bailout plan will contain the risk that the region’s debt crisis will spread, the report said.

To contact the reporters on this story: Wes Goodman in Singapore at wgoodman@bloomberg.net

To contact the editor responsible for this story: Nicholas Reynolds at nreynolds2@bloomberg.net

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