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Oh, it’s meaningful. That’s why Moodys did it on a Friday after the markets closed. They are giving investors all weekend to get over any panice and set up trading strategies for Monday.

Even after the latest bailout (which goes directly to the banks, not Greece), the losses are estimated at 70%. Yet the bond insurance is not being allowed to pay off on the losses. This will be the largest effect. Now everyone knows that bond insurance is a fraud. Which means bond yields in the eurozone will rise, perhaps sharply, to cover the newly realized risk.

Watch Spain and Portugal.

The markets already took the rating into account. It will not have any meaningful effect when the markets open on Monday. The ECB has already agreed to the terms worked out by the EU and the Greek government. The bond holders have agreed to the haircut. And the agreement signed by 25 of the 27 members of the EU will stave off interest increases in the short term.

IMO everyone knows that Greece is going thru a slow motion default. It is not a matter of if but when. The EU is just buying time for a soft landing. Greece will be getting out of the Eurozone. It can't and won't implement the austerity measures even though parliament passed them. It is just some kabuki theater so the Greeks can meet their next bond payments and get the EU handout.