S&P Downgrades Greece 3 days After Announcing Bond Buyback Plan Video

S&P Downgrades Greece To ‘SD’ After Bond Buyback Plan

“The downgrade is extremely significant considering there has been a lot of talk about the U.S. being downgraded as well.

The first image that comes to mind is a line of dominos all standing upright, and one of them now tipping,” Ben Lichtenstein, president at Tradersaudio.com told CNBC Asia’s “Squawk Box” on Tuesday, adding that the spotlight could turn to Germany next.

Standard & Poor’s cut Greece’s sovereign credit rating to SD, or selective default, from CCC, just three days after the country revealed plans to spend up to 10 billion euros in a bond buyback program.

Greece was downgraded by S&P on Wednesday in a move that was driven by the country’s latest invitation to private sector debtholders to participate in ta series of debt buyback auction.

“Greece’s invitation constitutes the launch of what we consider to be distressed debt restructuring,” S&P said in a statement.

The rater however said it will likely look over the selective default to be raised back to triple-C when the debt buyback program is completed around December 17.