Standard & Poor's on Thursday said it could cut Greece's BB-plus credit rating if it becomes clear that the proposed European Stability Mechanism (ESM) will favor public creditors to the detriment of private bond holders.

Greece, as a potential recipient of ESM funding, could have its ratings negatively affected, S&P said, echoing a similar warning it issued earlier this week regarding Portugal's ratings.

A decision on whether to downgrade Greece will be made in the next three months, according to S&P.

(Reporting by Walter Brandimarte; Editing by Jan Paschal)