The rating agency Moody's has cut the sovereign credit rating of Greece to the lowest level, saying the country's default risk was high.
Moody's Friday downgraded Greece's long-term sovereign credit rating from "Ca" to "C", the lowest credit rating level on its bond scale, meaning the debt is in default, reported Xinhua.
The rating decision "was prompted by the recently announced debt exchange proposals for Greece, which imply expected losses to investors in excess of 70 percent, which is consistent with Moody's criteria for a C rating", said a report issued on Moody's website.
"Moody's decision not to assign an outlook to the rating is based on the very high likelihood of a default by the Greek government on its bonds and the fact that C is the lowest rating on Moody's rating scale," the rating agency said.
