PULSE: Fitch: Greek bond swap would be restricted default

FRANKFURT (MarketWatch) -- Fitch Ratings on Wednesday cut Greece's sovereign credit rating to C from CCC and said a planned debt swap that will see private bondholders take a 53.5% write-down on the value of their Greek government bonds would constitute a "restricted default" when it is completed. The ratings of Greek government bonds affected by the swap, including bonds that aren't tendered but are restructured under so-called collective-action clauses imposed by the government, would be lowered to D, the ratings firm said. Shortly after the swap is completed and new bonds are issued, Greece's sovereign rating will be moved out of restricted default and re-rated "at a level consistent with [Fitch's] assessment of its post-default structure and credit profile."