Greece's downgrade by Fitch Ratings is the first in a series of ratings cuts that the nation can expect after it negotiated the biggest sovereign debt restructuring in history.

Fitch lowered Greece's credit grade by two levels to C from CCC, saying a default is “highly likely in the near term,” and that it will cut the nation again to “Restricted Default” once a bond exchange is completed. Standard & Poor's said in July it expected to downgrade Greece to “Selective Default” after the restructuring agreement, while Moody's Investors Service has said it will cut the nation to its lowest rating.

Greece sealed a 130 billion-euro ($170 billion) bailout package by agreeing yesterday to austerity measures while reducing its bond principal by 53.5 percent as investors swap into new securities with longer maturities and lower coupons. Fitch and S&P have both said they expect to later raise Greece's ratings once the deal has been completed.