Greece's second bailout would have a "limited" impact on its massive debt burden, according to credit rating agency Moody's. The agency put the country's debt further into "junk" territory.
Moody's downgraded the rating of Greek government debt to its second-lowest rating, a move that would reflect the 'substantial economic losses' expected for debtholders.
"Greece will still face medium-term solvency challenges: its stock of debt will still be well in excess of 100 per cent of GDP for many years and it will still face very significant implementation risks to fiscal and economic reform," Moody's said in a statement.
The warning comes as the agency said the €159 billion rescue deal struck by eurozone leaders on Thursday meant the likelihood of Greece defaulting was "virtually 100 per cent."
Under the package, 17 eurozone leaders agreed to a second €109 billion bail-out from Europe and the International Monetary Fund, plus €50 billion from the private sector via a series of bond exchanges and buy-backs - the element which would be classed as a default.
With the latest downgrade, Greek government debt's rating has gone down from Caa1 to Ca, its second-lowest rating, to reflect the "substantial economic losses" expected for debt holders.
Ratings of eight Greek banks have also been put on review for a possible downgrade by the ratings agency.
In an assessment of the eurozone deal's impact, Moody's said all governments in the region stood to benefit from the containment of the risk of contagion stemming from a disorderly default or a large "haircut" or losses on Greek bonds. This would also allow reining of Greece's debt though only "slightly".
However, according to Moody's, the rescue package could ultimately threaten the positions of other countries.