Chinese rating agency Dagong said Tuesday it had cut its sovereign rating for Greece to the second-lowest level because the indebted nation was no longer solvent and needed massive restructuring. The agency cut Greek debt from triple-C to C and warned it may downgrade it again to the lowest "default" level, if the government went ahead with the current restructuring plan.
"As Greece has completely lost its solvency it has to prepare for a massive debt restructuring," the agency said. Dagong has little sway outside of China, but has made headlines by accusing mainstream agencies Moody's, Fitch and Standard & Poor's of causing the financial crisis by not properly disclosing risk.