Skip to main content

The Globe and Mail

Fitch downgrades Greece to restricted default

Protesters raise a Greek flag in front of parliament during a rally against austerity economic measures in Athens' Syntagma (Constitution) Square in this June 17, 2011 file photo.

JOHN KOLESIDIS/JOHN KOLESIDIS/REUTERS

The Fitch ratings agency has downgraded Greece to "restricted default" after the country secured a strong majority of private creditors to participate in a bond swap deal that will wipe off about €105-billion from its national debt.

Friday's move was expected, with ratings agencies having said they considered the bond swap deal to be a default. The two other major ratings agencies, Moody's and Standard & Poor's, have already downgraded Greece to default level.

Following weeks of intense discussions, the Greek government said Friday that 83.5 per cent of private investors holding its government bonds were participating in a bond swap. Of the investors holding the €177-billion ($234-billion U.S.) in bonds governed by Greek law, 85.8 per cent joined.

Story continues below advertisement

Report an error
Comments are closed

We have closed comments on this story for legal reasons. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Combined Shape Created with Sketch.

Combined Shape Created with Sketch.

Thank you!

You are now subscribed to the newsletter at

You can unsubscribe from this newsletter or Globe promotions at any time by clicking the link at the bottom of the newsletter, or by emailing us at privacy@globeandmail.com.