Ratings agency Fitch Wednesday downgraded Greece's debt rating to its lowest possible level, by two notches to C, down from a CCC rating.
It said the downgrade was triggered by the deal between Greece and the banking industry, under which the banks will swap their existing bonds for new debt worth much less.
The exchange, if completed, would constitute a "distressed debt exchange," said Fitch.
Once the bond exchange was completed, Fitch said it would look again at Greek government debt and issue new ratings.
Most Popular Stories
- Slow Week Ahead of December FOMC Meeting
- Hispanics Seek to Grow School Board Members
- GM Bailout Saved 1.2 Million U.S. Jobs, Report Says
- 'Knockout Game': Myth or Menace?
- Questions Remain in Jenni Rivera's Death
- Bitcoin Used to Buy Tesla Car
- Banks Fret as Volcker Vote Approaches
- Paul Walker Fans Pay Respects
- 18 L.A. Sheriff's Deputies Face U.S. Charges
- Yellen Set to Become One of World's Most Powerful Women