The rating agency Moody's downgraded Greek government debt from B1 to Caa1, a 3-notch cut, and issued a negative outlook on the country.

Moody's says there is a 50% chance Greece will default over the next 5 years.

In addition to the increased risk restructuring, the agency cited highly uncertain growth prospects and missed targets in budget reforms.

This comes after Moody's downgraded Greece to B1 from Ba1 on March 7th.

In response, Greece says that Moody's downgrade does not take into account government efforts to meet targets and expedite privatizations.

EUR/USD -  currently trading at 1.4360, only down 35 pips on the day, very much a muted reaction so far

Stocks are falling sharply in the final hour of trading, Dow down 250 points, -2%.