Fitch Cuts Greek Rating, Says Debt Exchange Equals Default
Wednesday’s action from Fitch comes a day after Greece secured a
second package of bailout loans from the so-called Troika – the IMF,
European Commission and ECB – worth €130 billion. The agreement with
private sector bondholders on 53.5% haircuts is crucial to reduce
Greek’s debt burden to a level that is manageable, at least in the short
term, but still awaits creditor approval over the next few weeks.
The deal is not enough to save Greece from a default though, Fitch said Wednesday