GMT 222 on the evening news, Fitch Ratings on Wednesday Greece’s long-term foreign currency and local currency issuer default rating (IDR) from “CCC” down to “C”, and confirmed its short-term foreign currency rating of C.
Fitch believes that the debt swap in the Greek plan if completed, would constitute a “limited breach of contract”, therefore the country’s sovereignty IDR down to the “C” from “CCC”, which means in the near future is likely to breach of contract.
The rating agency also said that Greek government bonds, the debt swap will affect that although there is no pay but was included in the mandatory restructuring of bond rating will be lowered to D.
Fitch said the debt swap and issuance of new debt, Greece’s sovereign rating will soon be out of a limited breach of contract level, and according to the assessment of the status of Fitch to its breach of contract structure and credit re-rating.
Fitch also confirmed that the euro-zone government credit limit (the Country Ceiling) rating of “AAA”, applicable in all Member States of the euro area.
Tags: credit, Fitch cut Greece's sovereign credit rating to C, Greece
