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Fitch Agency downgraded Greece from CCC to C, report news agencies. The agency's decision was prompted by the message of the Greek government that private creditors of Greece will have to participate in the government securities exchange programme.  The official release of Fitch reads that the downgrade is a result of the decision of the Eurogroup to grant a second bailout to Athens, including the involvement of private creditors in the PSI proceedings.
     If the exchange of government securities is completed, it will be a very unpleasant development for the Greek debt, according to Fitch experts. They say if the Greek debt reduction is implemented by the PSI - Private Sector Involvement procedure and affects private creditors, it would mean Rating Default and the country will be rated Restricted Default.  
     After the completion of the exchange procedure the agency will rate the country again, and depending on the economic situation formed in Greece Fitch will consider how to rate the country after the default.