Fitch downgrades Greece, will reassess after debt swap

Last Updated: Wednesday, February 22, 2012 - 19:08

Athens: Fitch downgraded Greece on Tuesday to 'C' from 'CCC', a move widely expected after the country said it may enforce losses on bondholders who do not voluntarily sign up to a debt swap plan accompanying its EU/IMF-approved bailout.

"The exchange, if completed, would constitute a 'distressed debt exchange'," Fitch said.

When the bond swap plan is completed Greece's rating will drop further to 'restricted default' and then will be re-rated again "at a level consistent with the agency's assessment of its post-default structure and credit profile," Fitch said.

Bureau Report

First Published: Wednesday, February 22, 2012 - 19:08

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