UPDATE 1-INTERVIEW-Greece to auction T-bills in Jan- PDMA chief

* Greece will auction T-bills in January

* Greece to borrow 53-54 bln euros this year

* No need to front-load in Q1

* Moody's rating fair, Fitch/S&P downgrades "excessive"

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By George Georgiopoulos

ATHENS, Jan 5 (Reuters) - Greece will auction T-bills in January, its first sortie into capital markets this year, as part of a 53-54 billion euro ($76-78 billion) borrowing plan, the head of the country's debt agency (PDMA) said on Tuesday.

Greece's credit standing suffered three downgrades by rating agencies last month on concerns over its soaring budget deficit and worsening debt dynamics. The country borrowed more than 66 billion euros last year.

"There will be T-bill auctions in January, most likely next week," Public Debt Management Agency Chief Spyros Papanicolaou told Reuters in a telephone interview.

He did not say how much Greece would try to raise but a total of about 4.27 billion euros of 13-, 26- and 52-week T-bills mature later this month.

Greece's public debt is seen rising to 120.8 percent of GDP, or 294.9 billion euros, this year from 113.4 percent in 2009, based on budget projections, meaning that the country is heading to become the euro zone's most indebted economy.

Citing fiscal health concerns, Fitch and Standard & Poor's cut Greece's rating to BBB+ and Moody's to A2 from A1.

"The rating downgrades by Standard & Poor's and Fitch were excessive, Moody's rating is a more fair reflection of Greece's situation," Papanicolaou said.

FLEXIBLE TACTICS

The head of PDMA said Greece would adopt flexible borrowing tactics this year as uncertainties remain.

"Right now the borrowing programme for 2010 is very flexible, there are imponderables." Papanicolaou said. "Among them will be how the country's stability programme is received by markets and the EU Commission."

Nervous about market reception, Greece in January privately placed 2 billion euros of 5-year floating rate notes with four banks. Papanicolaou said private placements remained an option for this year as well.

Greece's socialist government is putting together a long-term plan to shrink soaring budget deficits, restore fiscal health and regain market credibility.

The so-called stability programme, a roadmap of how the euro zone's most indebted economy will bring its fiscal shortfall down to the European Union's 3 percent of GDP limit, will be submitted to the EU executive by the end of January.

Athens is preparing the plan in consultation with EU institutions before final submission. The government wants to get the budget gap down to 3 percent from 12.7 percent last year by 2012, a year earlier than initial plans.

Papanicolaou said Greece would be tapping capital markets for 53-54 billion euros in 2010 to plug fiscal shortfalls and refinance debt, confirming what Finance Minister George Papaconstantinou told Reuters TV in an interview on Dec. 16.

"In the first quarter we do not have big borrowing needs and no pressure to front load," he said. (Editing by Stephen Nisbet)