LONDON — Moody's Investors Service on Monday downgraded Greece's government bond ratings into "junk" territory, citing the risks in the rescue package for the debt-ridden country from the Eurozone and International Monetary Fund.

Moody's cut the rating by four notches, to "Ba1" from "A3," and also downgraded Greece's short-term issuer rating to "Not-Prime" from "Prime."

The downgrades reflects concern that the country could fail to meet its obligations to cut its deficit and pay down its debt. While the support package does create a credible set of reforms, the lower rating is consistent with the risks associated with it, Moody's said.

Greece's Finance Minister George Papaconstantinou last week said any talk of his country defaulting on its debt was "ridiculous."