Fitch cuts Greek rating to near default

Ratings agency Fitch has cut Greece’s long-term ratings to its lowest rating above a default, becoming the first ratings agency to make the widely expected downgrade after the country announced a bond exchange plan to ease its massive debt burden.

Fitch said that Greece would be designated as having technically defaulted after the bond exchange is formalised, but the new bonds would be give a new rating.

All three big ratings agencies — Fitch, Moody’s and Standard & Poor’s — downgraded Greece in July when an initial debt swap plan was unveiled and have warned that losses for private creditors would trigger a temporary default.