Fitch Ratings has reduced the sovereign rating of Greece to C, a highly vulnerable economic state. The agency emphasized that exchange of bonds is considered a sovereign default, according to criteria of the distressed debt exchange (DDE), The Wall Street Journal reports.
Moody’s Investors Service approved the rating at C and announced default. Most creditors will have to exchange bonds according to collective action clauses. They will write off 70% of initial cost of Greek bonds. Moody’s does not use the “default” or “selective default” ratings, Interfax reports.
