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S&P Downgrades Greek Sovereign Rating To ‘Selective Default’

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International ratings agency Standard & Poor’s downgraded on Tuesday Greece’s long-term sovereign credit rating from ‘CC’ to ‘selective default’ after the country launched a bond swap plan last week to ease its debt burden.

“In our opinion, Greece’s retroactive insertion of CACs [collective action clauses] materially changes the original terms of the affected debt and constitutes the launch of what we consider to be a distressed debt restructuring,” S&P said in a statement.

Last week Eurozone officials agreed to a second 130-billion euro ($172 billion) bailout aid package for Greece and called for private investors to waive 53.5 percent of their principal in a bond swap to cut Greece’s massive 360-billion euro debt by 107 billion euros.

Fitch, another international rating agency, downgraded last Tuesday Greece’s long-term foreign and local currency Issuer Default Ratings to C from CCC.

Ria Novosti

Ria Novosti

RIA Novosti was Russia's leading news agency in terms of multimedia technologies, website audience reach and quoting by the Russian media.

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