Fitch Ratings has dropped Portugal’s credit rating to junk status based on the growing debt and weaker outlook for the economy. The long-term rating was lowered one level to BB+ from BBB- with a negative outlook, Fitch said today in an e-mailed statement. Portuguese 10-year bonds fell after the announcement, with the yield at 12.14 percent at 1:09 p.m. in Lisbon.
Ã¢â‚¬Å“The countryÃ¢â‚¬â„¢s large fiscal imbalances, high indebtedness across all sectors, and adverse macroeconomic outlook mean the sovereignÃ¢â‚¬â„¢s credit profile is no longer consistent with an investment-grade rating,Ã¢â‚¬Â Fitch said. The ratings of utility EDP-Energias de Portugal SA (EDP) and telecommunications company Portugal Telecom SGPS SA (PTC) are unaffected, Fitch said.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.