Open

Coming up

Don't miss

Replay


LATEST SHOWS

DEBATE

Iraq's Christians - Nowhere to Run? (part 2)

Read more

DEBATE

Iraq's Christians - Nowhere to Run?

Read more

MEDIAWATCH

Towards a "Third Intifada"?

Read more

FOCUS

What solutions for California's overcrowded prisons?

Read more

MIDDLE EAST MATTERS

Gaza conflict: Palestinians mark sombre Eid

Read more

WEB NEWS

Celebrities in the Israel-Gaza crossfire

Read more

IN THE PAPERS

Israeli strike takes out Gaza power station

Read more

IN THE PAPERS

French newspaper apologises for Sarkozy story

Read more

BUSINESS DAILY

Last-ditch talks aim to avert Argentina default

Read more

  • Deadly strike hits Gaza market despite four-hour 'truce'

    Read more

  • Russia defiant as US, EU unveil 'phase three' sanctions

    Read more

  • Fourth female suicide bomber targets Nigerian city

    Read more

  • US rebounds to 4% growth in second quarter

    Read more

  • Argentina fails to reach deal with holdout creditors

    Read more

  • Suspect in Jewish Museum attack charged with 'terrorist' murder

    Read more

  • Women should not laugh in public, Turkey's deputy PM says

    Read more

  • Video: Coping with rocket attacks in Israel’s Sderot

    Read more

  • Rats on the rampage at Louvre museum gardens

    Read more

  • France evacuates nationals, closes embassy in Libya

    Read more

  • 'Compelling' signs Kosovo leaders trafficked organs, prosecutor says

    Read more

  • Graphic: Ebola spreads across West Africa

    Read more

  • Video: How tourism is helping Rwanda’s gorillas, ex-poachers

    Read more

  • Islamists seize key Benghazi army base as fire rages on

    Read more

Business

Moody's cuts Portugal's debt rating by two notches

Text by News Wires

Latest update : 2010-07-13

Moody's, one of three leading international ratings agencies, has lowered Portugal's sovereign debt rating by two notches to A1, casting further doubt on the Portuguese government's ability to balance the country's worsening public finances.

AFP - Moody's international ratings agency on Tuesday downgraded Portugal's sovereign debt rating two notches to A1, based on its worsening public finances and weak growth prospects.
  
Moody's said it expected the Portuguese government's debt trend to continue to deteriorate for "at least another two to three years," with the ratio of debt to gross domestic product eventually nearing 90 percent.
  
Portugal's government bonds previously had an AA2 rating.
  
The agency, which initiated a review for a possible downgrade on May 5, said it "remains concerned about the economy's medium-term growth potential."
  
"The Portuguese government's debt-to-GDP and debt-to-revenues ratios have risen rapidly over the past two years," said Moody's analyst Anthony Thomas.
  
"This deterioration came about due to the government's anti-crisis measures and the operation of the budget's automatic stabilisers, such as higher unemployment benefits, when the economy went into recession."
  
Thomas said it was not yet clear whether the labour market and other reforms initiated by the government will boost growth enough to reverse the country's deteriorating debt trends.
  
"This would imply that Portugal's government would remain relatively highly indebted for the foreseeable future," he said.
  
Another international ratings agency, Standard & Poor's, downgraded Portugal's credit rating in April owing to similar concerns about fiscal and economic weaknesses.

Date created : 2010-07-13

  • EUROZONE

    Portugal and Spain commit to accelerating deficit cuts

    Read more

COMMENT(S)