Ratings agency Standard & Poor's says its decision to reduce Greek's long-term rating to CCC has been justified by proposals put forward by the Federation Bancaire Francaise (FBF).

The ratings agency lowered its long-term rating for Greece to 'CCC' from 'B' on concerns over rising risk last month, which it says has since been backed by the FBF proposals.

In a new report, S&P revealed that it believed the proposals had been made at the behest of Greece's eurozone creditors.

Last month's downgrage was prompted by fears an enhanced official financing package could require private sector debt restructuring. The agency said it would view private sector debt restructuring as a default on its debt obligations.

According to S&P, the Greek government's near-term reliance on funding from the European Union and International Monetary Fund, challenges in cutting its deficit and the pricing of government debt highlighted its 'weak creditworthiness'.

'In summary, the growing risk that the Hellenic Republic might engage in a  distressed debt restructuring was one of the reasons we lowered its rating on June 13,' it explained.

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