Greece shrugged off a downgrade to “selective default” on Monday by ratings agency Standard & Poor’s, saying the move was expected following its launch of private sector involvement in a €206bn debt restructuring.

The finance ministry said the downgrade was “pre-announced and all its consequences have been anticipated, planned for and addressed” by eurozone partners who are backing Greek efforts to avoid a disorderly default.

A successful completion of the debt restructuring would clear the way for Athens to receive a second €130bn bail-out from international lenders, in return for implementing a fresh round of fiscal and structural reforms. Greece would remain in selective default until its debt swap offer closes on March 12 for a majority of bondholders, but “upon completion of the PSI, the sovereign is expected to be re-rated upwards,” the ministry said.