Moody's downgrades Greece after debt swap

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Moody's downgrades Greece after debt swap

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The credit agency Moody’s has cut Greece’s rating again because it says there’s still a risk of a default despite the recent debt deal with private investors.

The arrangements amount to a 70 percent write-off for investors – 107 billion euros which Moody’s considers to be a default in all but name.

The downgrade, announced on Friday, comes despite the EU approval of a second bailout package for Greece.

The agency thinks that Greece still faces financial challenges in the medium term even though it has done all the politicians have asked with regard to austerity measures.