Fitch downgraded Greece by three notches to ‘high default risk’, the announcement follows yesterday’s Eurogroup statement on a second financing programme for Greece. The rating action is in line with Fitch;s statement on 6th June 2011, which outlined its rating approach to a sovereign debt exchange. In Fitch’s opinion, the exchange, if completed, would constitute a ‘distressed debt exchange’ in line with its criteria. 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 and will result in the country’s IDR being lowered to ‘Restricted Default’ upon completion. Fitch says proposal to reduce Greece’s public debt via debt swap would constitute a rating default. Source: Sources Wed, 15:34 22-02-2012