Moody's downgrades Greece to notch above default

Ratings Agency Moody's has downgraded Greece's sovereign debt rating by three notches, leaving it one away from default.

Moody's is warning that creditors will lose out from the latest bailout deal.

It said the combination of the EU support programme and debt exchange proposals implies that private creditors will incur substantial losses on their holdings of government debt.

Moody's said the likelihood of a default on Greek government bonds is virtually 100%.