Huffpost Business

Greek Debt Downgrade: S&P Cuts Greece's Rating, Citing "Distressed Debt Restructuring"

Posted: Updated:

WASHINGTON -- Standard & Poor's has downgraded Greece's credit rating to "selective default" because of steps the country took last week to force its bond holders to accept steep losses.

Greece is pushing private-sector holders of its debt to accept a massive bond swap. Under the swap, Greece would provide new bonds with less than half the face value of the original debt and at a lower interest rate. The swap would reduce Greece's debt load by $142 billion.

The swap is part of a broader agreement with European leaders that will provide Greece with a second bailout worth about $173 billion.

Greece's government last week required all bondholders to accept the terms of the swap once a certain proportion do so. S&P says that constitutes a "distressed debt restructuring."

all-earlier-on-huffpost

Suggest a correction

Around the Web

S&P downgrades Greek debt again - BBC

ECB Suspends Greek Debt as Collateral After S&P Credit Downgrade

Debt Downgrade News and Video - FOX Business Topics ...

Greek bond swap bring new downgrade - YouTube

ECB Suspends Greek Debt as Collateral After S&P Downgrade

S&P downgrades Greece to selective default

Eurogroup anticipated Greek downgrades - Juncker

Fitch downgrades Greece on debt swap plan