Ratings agency Standard & Poor’s downgraded Greece’s sovereign rating deeper into junk territory on Wednesday, questioning whether its debt is sustainable after the government delayed a payment to the International Monetary Fund (IMF), according to Reuters news agency.

In a statement, S&P said it had lowered the rating by one notch to CCC from CCC+, saying that as Athens delayed the debt repayment last Friday, the government appeared to be prioritising pension payments and domestic spending over its debt-service obligations.

S&P also said that given the risk of a further worsening of liquidity for the government, its banks, and the economy, its credit outlook for Greece is negative.