(VOVworld)-The US based rating firm Moody’s declared Greece in default on its debts Friday after Athens carved out a deal with private creditors for a bond exchange that will write off 107 billion euros ($140 billion) of its debt. Moody's pointed out overall the cost to bondholders, based on the net present value of the debt, will be at least 70 percent of the investment, According to Moody's definitions, this exchange represents a 'distressed exchange,' and therefore a debt default. Ahead of the debt deal, Moody's had already slashed Greece's credit grade to its lowest level, "C," and so there was no impact on the rating.