(Reuters) - Credit ratings agencies hammered Greece on Monday after senior euro zone policymakers acknowledged that Athens will need a second bailout package soon to avert a disorderly overhaul of its debt obligations.

Officials said the European Union was also looking to lower interest rates on rescue loans to Ireland within weeks and eyeing easier bailout terms for Greece as the common currency area floundered deeper into crisis.

But ratings agency Standard & Poor's suggested far more radical measures would be required to make Greece's 327 billion euros ($470 billion) debt mountain sustainable, saying Athens may have to reduce the face value of its bonds by up to 70 percent, implying big losses for investors.

S&P downgraded Greece's credit rating further into junk territory to B, just one notch above Pakistan's, hitting Greek bank stocks as investors sought safety in German bonds. The euro slid to its lowest level in three weeks against the dollar.

Anyone who thinks this is "Economy" and not 100% political is wrong.