Ratings agency Standard & Poor’s said Monday that it would not consider Greece to be in default even if the eurozone country failed to repay 6.7 billion euros due in July and August to the European Central Bank.

"That’s because our sovereign ratings pertain to a central government’s ability and willingness to service financial obligations to commercial creditors, and we consider the ECB to be an official creditor," it said in a statement.

Although S&P would not downgrade Greeces rating to ‘selective default’ in the event that Athens failed to pay, the agency said it may still cut the grade to a lower level than the current ‘CCC’ rating.

Greece is due to redeem bonds worth an equivalent of $7.6 billion held by the ECB, but it is suffering from an acute cash shortage.

Talks with its international creditors collapsed over the weekend, raising fears that the country would soon be forced to default on its debt. [AFP]