Greece is already reeling under unbearable debt levels and the downgrading of the sovereign status has only aggravated the situation. Greece is now unable to borrow money from the market at anything less than 6% per annum, which is over double the rate paid by other European Countries.
The problem is primarily due to lack of clarity from Greece on how it is planning to cut down the high government spending. There is also no clarity on how the European Union is going to provide credit support to Greece. All these are now forcing Greece to look at the option of seeking IMF help.