Global credit rating agency Fitch Ratings has slashed the sovereign credit rating of Greece from “CCC” to “C.”

Fitch said it made the decision based on Euro Group finance ministers’ decision to grant Greece a second bailout on Monday, and the Greek government’s proposal for the exchange of state bonds.

The international credit rating agency said the downgrade indicates that a Greek default is highly likely in the near future.

Fitch added that Greece’s proposal to reduce its public debt burden via a debt swap plan with private creditors constitutes a "distressed debt exchange."

As a result, it will additionally lower the nation’s rating to the "restricted default" level once the swap is completed and then rerate it again based on Greece's "post-default structure and credit profile."