S&P: Effect of Greek default could be catastrophic

The impact of a Greek default could be so great that the euro zone will do everything it can to avoid it, rating agency Standard and Poor's said in London on Tuesday.
"The knock-on effects may be so catastrophic that every line of defence would be built up to try to prevent this situation," said Moritz Kraemer, head of sovereign credit ratings for Europe at Standard & Poor's.
"We believe if Greece were to default the recovery rate for bond investors could be somewhere between 30 and 50%," Kraemer added.