US & World News

Fitch Ratings downgraded Wednesday the long-term rating of Greece from CCC to C, a decision widely expected after the announcement by the Greek government that could force private creditors to bear their losses if they were not involved voluntarily agree to exchange debt.

The note of Greece at Fitch is no longer only a notch above default.

The rating agency said that this decision follows the announcement Tuesday by the Eurogroup agreement on a second bailout program and those of Greece on how to the debt swap involving voluntary participation of the private sector. 

She believes that the exchange, if completed, will constitute a debt exchange and forced the decommissioning and spoke "indicates that a default is likely in the short term. Ratings securities affected by this exchange were also lowered to 'CCC' to 'C' ".

When the exchange is completed, the rating of Greece will be lowered to "restricted default" and after being re-evaluated, with the emission new obligations, "to a level consistent with the evaluation of the agency's structure and its credit profile post-default".