The Latest in Grecian Woes

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Euro zone finance ministers meet in Brussels to discuss a second funding deal for Greece, which is battling a major debt crisis. This comes just 24 hours after rating agency Standard and Poor's makes the country its lowest rated in the world. Here's more.

Greek stocks made modest gains as markets opened but they didn't kill the pain of a new headache.

Standard and Poor's has downgraded the country to triple C, eight notches into junk and just four above default.

Greece now ranks behind countries like Pakistan and Ecuador - with the cost of insuring its debt almost twice as much as insuring Pakistani bonds.

The downgrade comes as the EU and IMF work on a second aid package for Greece - after last year's 110 billion euro bailout was found to be insufficient.

Nick Parsons is from National Australia Bank.

[Nick Parsons, Chief Market Strategist, National Australia Bank]:
"We do expect an aid package will be reached, a second bailout will be given to Greece and that at some point we will see a little bit more calm returning to that situation."

But tensions are emerging over the best way to help Greece avoid a default.

Germany insists private creditors should be made to take on some of the burden in any debt restructuring - while the ECB believes that tactic could trigger panic on the markets, making matters worse.

Standard & Poor's warns it will view any debt restructuring as a default.

[Marko Mrsnik, Director of Sovereign Ratings, S & P]:
"If there is of course a case for default for us to consider a default then we would of course indicate that very clearly in our rating action."

EU leaders were in Brussels on Tuesday discussing the crisis while the Greek government prepares to vote on a new package of austerity measures.