Credit rating agency Moody's has cut Greece's rating, warning that a planned debt swap would constitute a default.
The rating was cut another three notches from Caa1 to Ca - just two more notches shy of a default rating.
"The announced EU programme... implies that the probability of a distressed exchange, and hence a default, on Greek government bonds is virtually 100%," the agency said.

The debt swap would increase Greece's borrowing terms by up to 30 years.

However, a statement last week from the Institute of International Finance - a trade body representing global banks and other major lenders - conceded that the debt deal would cost private sector creditors an estimated 21% of the value of the Greek debts they currently hold.
It comes after another rating agency, Fitch, warned that it too expected the deal would mark a "selective" debt default by Athens.

The debt exchange with private sector lenders is part of a comprehensive package announced on Thursday by European leaders to shore up the euro and prevent the Greek debt crisis from spreading to other economies, notably Spain and Italy......BBC News - Greece rating cut by Moodys amid default warning