The track record of the ratings agencies has been poor, but they are right on this call. It is obvious that a Greek default is “highly likely in the near term” as Fitch says.
“In Fitch's opinion, the exchange, if completed, would constitute a 'distressed debt exchange' (DDE) in line with its criteria and consequently yesterday's announcements set in motion the agency's process for reviewing Greece's issuer and debt securities ratings,” Fitch said in a statement.
