Fitch downgraded Greece on Tuesday to 'C' from 'CCC', a move widely expected after the country said it may enforce losses on bondholders who do not voluntarily sign up to a debt swap plan accompanying its EU/IMF-approved bailout.

The exchange, if completed, would constitute a 'distressed debt exchange', Fitch said.

When the bond swap plan is completed Greece's rating will drop further to 'restricted default' and then will be re-rated again at a level consistent with the agency's assessment of its post-default structure and credit profile, Fitch said.

(Reporting by Harry Papachristou)