Greece Downgraded, Put on Negative Watch (NBG, EXM, DRYS, OTE, more)

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NBG Hot Sheet

Overall Analyst Rating:
BUY (= Flat)

Greek stocks are losing some ground today after Greece (the country of) recently had it credit rating downgraded by Fitch from ‘A-‘to ‘BBB+,’ the lowest in the European Union. Other ratings, such as Moody’s and S&P’s, have put Greece on a negative outlook.

European Commissioner for Economic and Monetary Affairs Joaquin Almunia said that Greece faces “very substantial” economic and fiscal challenges. Greece is expected to have a budget deficit of 12.7% of GDP, much greater than the European Union allowable limit of 3%.

Swedish Finance Minister and European Union Council of Finance Ministers Chair Anders Borg said Greece has to “get serious” about its fiscal situation.

Finance Minister George Papaconstantinou said he has pledged to cut the deficit at least 3.6% to 9.1%, still above the EU limit.

Some stocks that investors should watch:

National Bank of Greece SA (NYSE: NBG) down 8.65% to $5.49;
Hellenic Telecom ADS (NYSE: OTE) down 4.92% to $7.34;
DryShips, Inc. (NASDAQ: DRYS) down 2.4% to $6.11;
Excel Maritime Carriers, Ltd. (NYSE: EXM) down 5.41% to $6.64;
Diana Shipping, Inc. (NYSE: DSX) down 3.66% to $15.02;
Tsakos Energy Navigation, Ltd. (NYSE: TNP) down 4.13% to $15.79.