ATHENS, March 10 (Reuters) - Greece on Thursday asked EU and ECB leaders to urgently address problems created by rating agencies for countries struggling with debt crises, just days after Moody's downgraded Athens by three notches.
Such "unjustified" moves by rating agencies can hinder Greece and other troubled countries from regaining access to financial markets, the finance minister said in a letter to Eurogroup chairman Jean-Claude Juncker, EU monetary affairs commissioner Olli Rehn, EU's financial services chief Michel Barnier and ECB President Jean-Claude Trichet.
"Rating agencies must be regulated effectively at a European and world level," George Papaconstantinou said in the letter, which was released by the Finance Ministry. "This is an issue that must be dealth with urgently by eurogroup and ecofin."
On Monday, Moody's slashed Greece's credit rating by three notches citing an increased default risk, increasing pressure on euro zone leaders to ease repayment terms on bailout loans to Athens.
Greek debt was downgraded to B1 from Ba1 -- lower than Egypt -- raising the price of insuring Greek, Spanish and Portuguese debt against default and Greek bond spreads over German bunds.
The government issued an angry protest, saying reports by the EU and IMF, which have extended Greece a 110 billion euro bailout, have been positive on progress.
"Such unjustified and imbalanced decisions could become self-fulfilling prophecies," Papaconstantinou said. "They can hinder the course of Greece and other countries in a similar position as we try to regain access to international markets."
Moody's, the first of the three main rating agencies to cut Greece so low, said risks stemmed from a revenue shortfall and slow reforms of healthcare and state-owned companies. [ID:nLDE7260EL].
Papaconstantinou said Moody's downgrade revealed the "distorted incentives and lack of accountability" on the part of rating agencies and slammed them for missing the signs of the 2008 financial crisis.
(Reporting by Dina Kyriakidou; Editing by Ron Askew)