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The credit rating agency Standard & Poor's has put Greece in the selective default (SD) category. This is a new lowering of the credit rating of the indebted Mediterranean country, the rating of which from May to today was CCC. Standard & Poor's grounds its decision on the negotiations between Greece and its lenders, which took place last week and offered a new reduction of the Greek debt. So, the bond buy-back has started on Monday and for every euro invested in Greek government bonds lenders will receive new bonds with an average nominal value of 35 cents.

    Standard & Poor's explains that this is a common practice and that each country proceeding to a debt haircut or a buyback is lowered to selective default. In just 10 months, the major international credit rating agency had lowered Greece to selective default (SD) twice. In February, the country fell again into this unenviable category after deciding to trigger the collective action clauses CACs in order to force all private lenders to take part in the haircut of the debt to private lenders known as PSI.