Greece's credit grade was reduced to SD, or selective default,by Standard & Poor's from CCC after the government began buyingits bonds back from investors, a statement on the rating company'swebsite said yesterday.

The nation has offered 10 billion euros ($13.1 billion) topurchase debt issued earlier this year as the bailed-out countryattempts to cut a debt load that may threaten future internationalaid. The rating was lifted to CCC from SD in May after undergoingthe largest sovereign restructuring in history earlier thisyear.

“I don't think the downgrade will have a big impact,” saidHajime Nagata, who helps oversee the equivalent of $125.1 billionas an investor in Tokyo at Diam Co., a unit of Dai-ichi LifeInsurance Co., Japan's second-biggest life insurer. “They havealready restructured.”

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