This designation hardly comes as a surprise, since the ratings agency had previously said that the country's planned debt restructuring would throw it into restricted default.

Fitch's decision mirrors a recent downgrade from Standard & Poor's which put Greece in "selective default."

Unlike a disorderly default, in a "restricted" or "selective" default Greece has not actually been declared insolvent.

Fitch said it will raise Greece's issuer rating from "RD" after its debt swap has been completed on March 12.