New cut in Greek credit rating despite pledge on public debt

Greece's credit rating was cut yet again today despite efforts by the new government to slash public spending and pull the economy out of its economic crisis.

Moody's Investors Service became the third rating agency to downgrade Greek government bonds - from A1 to A2 - as worries mount over whether the country can honour its debts.

It followed more severe downgrades by rival ratings agencies Standard & Poor's and Fitch.

The Greek government responded with a promise to redouble its efforts to cut costs and reduce the country's worst debt crisis in decades.

It plans to bring public debt of �300 billion (£267.4 billion) under control by the end of 2013.

An official from the finance ministry said the decision by Moody's to only downgrade by a single notch was a sign that confidence is returning.