Credit rating agency Fitch has cut Greece's long term debt rating by one notch to BB+ from BBB-, dropping the euro zone member's debt from investment grade to speculative or 'junk' level. Greek debt is now rated junk by all three major rating agencies.
Fitch said it acknowledged that Greece's economic and budgetary performance under the EU-IMF programme had in many respects exceeded expectations. But Fitch added that its heavy public debt burden 'renders fiscal solvency highly vulnerable to adverse shocks'.
Greece said the fresh downgrade was proof that Europe ought to keep a closer eye on the agencies.
'Today's decision by Fitch comes as a result of an objection process submitted by Greece over the house's intention to make an even greater downgrade,' the country's finance ministry said in a statement.
