Once again Greece remains the focus in the revolving debt crisis in Europe. Moody's Investor Service cut Greece's credit rating by three steps with the rising risk of default by the nation.

Greece's rating was lowered to B1 from Ba1, to be now in the category of Belarus and Bolivia. Moody's said in a statement The rating agency believes that the likelihood of a default or distressed exchange has risen since its last downgrade of the Greek government debt rating in June 2010, where they raised doubts over the nation's ability to implement the budget cuts demanded as part of the conditions for the 110 billion euro bailout.

Greece's rating is already below investment grade, what is commonly known as junk status. Moody's also raised the alarm today with saying that 20% of the B1 rated sovereigns, non-financial institutions default within a five-year period which intensified the focus on Greece and further undermined its capacity to reach ashore.

Greek bonds fell and the yield surged to 12.3% on the 10-year bonds.