Fitch Ratings today once again cut the Greek credit rating to C from CCC and said that the new write-offs will constitute as a restricted default.

According to the rating agency, Fitch sees that the bond swap with that is said to see 53.5% write-down on the value of Greek government bonds would be a distressed debt exchange (DDE) and after the news was confirmed from the Eurogroup of the agreement on the private sector involvement the rating has been lowered to Greece to C from CCC indicating that default is highly likely in the near term.

In the statement agency said Fitch considers that the proposal to reduce Greece's public debt burden via a debt exchange with private creditors will, if completed, constitute a rating default, which according to Fitch will trigger the downgrade to Restricted Default ('RD') upon completion and thereafter once the exchange is completed with new securities the rating will be again raised and removed from the RD category.