Fitch Ratings has lowered Greece’s sovereign credit rating, pushing it deeper into junk status and heightening fears of a potential default. The agency cited increased risks linked to the restructuring of Greek debt as the primary reason for the downgrade.

The move reflects growing concerns about Greece’s ability to manage its debt burden and implement necessary economic reforms. Fitch’s decision underscores the challenges facing the Greek government as it struggles to meet the terms of its bailout agreements.

The downgrade is likely to further strain Greece’s financial position and could complicate efforts to secure additional funding. It also raises questions about the long-term stability of the Eurozone and the potential for contagion to other heavily indebted nations.

Key factors contributing to Fitch’s decision include:

• Increased uncertainty surrounding the implementation of austerity measures.
• Weak economic growth prospects.
• Political instability.
• The potential for further downgrades if the situation deteriorates.

The agency’s assessment suggests that a default, while not inevitable, is becoming increasingly likely. The implications of such an event could be far-reaching, potentially triggering a new phase of the Eurozone crisis.