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What’s the worst thing a debtor can experience? Higher interest on the same debt. Today, ratings agency Fitch downgraded Greece’s credit two levels to BBB-. The downgrade means Greece will now have to pay a higher interest rate to fund their debt.
Although Fitch should be commended for the downgrade, the move will also impact Germany and other members of the EU who attempt to financially aid Greece through the crisis. These increased costs will inevitably come at the expense of other more valuable uses in local economies.
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