Greece won some respite from financial market pressure Tuesday as ratings agency Standard & Poor's took the country off credit watch for a possible downgrade — a day after eurozone governments laid out a vague blueprint for possible loans to help the indebted country.
S&P's announcement that it was no longer considering a downgrade of Greece's credit rating after it made bigger budget cuts is the strongest sign yet that markets may see less chance of the country failing to repay its debts.
A Greek default would be a serious blow for Europe's currency union, showing that eurozone countries are unable or unwilling to lend their own money to one of their members. That's why markets and many economists expect that European government would step in and stop it with a financial backstop of some sort.
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