Fitch downgrades Greece again

Fitch Ratings has followed through with its threat to downgrade Greece after the debt swap was confirmed.

Greece’s long-term foreign and local currency issuer default ratings (IDRs) have been downgraded to ’RD’ (restricted default) from ’C’ after the country secured a majority consensus on a proposed write down of government debt.

Fitch previously downgraded Greece to C after it reached an agreement on the terms of a second, £108.6 billion bailout package.

“The downgrade to ’RD’ reflects Fitch’s previous commentary that the exchange would constitute a sovereign default event under the agency’s distressed debt exchange (DDE) rating criteria, and follows the downgrade of Greece to ’C’ from ’CCC’ on 22 February,” according to the agency. (article continues below)

The news comes after Standard and Poor’s took the decision to downgrade Greece’s rating to “selective default” in February.