Fitch Downgrades Greece: 'Default is Highly Likely in the Near Term'

Fitch Ratings downgraded Greece's credit rating further into junk status, a move widely anticipated after the country said it will force bondholders who do not voluntarily sign up to a debt swap plan to take a loss on their holdings. The rating agency cut Greece's credit rating from "CCC" to "C" and said the downgrade indicated that "default is highly likely in the near term."

Fitch will review its stance on Greece again once the debt swap had been completed. Greek benchmark October 2022 bonds stayed lower after Fitch downgraded the nation's credit rating, while European shares fell. Greeks spoke openly about the new measures which impose a permanent team of foreign inspectors to monitor the country's finances but were pessimistic that the multi-billion bailout will help the country in the long term.