Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-Moody's maintains Portugal at A3, outlook negative

Published 03/25/2011, 07:08 AM
Updated 03/25/2011, 07:12 AM

* Moody's maintains Portugal's A3 rating, negative outlook

* Commitment to fiscal consolidation supports A-range rating

(Adds context)

LONDON, March 25 (Reuters) - Moody's credit rating for Portugal depends heavily on the country maintaining strong commitment to consolidating its finances, the rating agency said on Friday.

Moody's maintains Portugal at A3, towards the lower end of its investment grade ratings, with a negative outlook after Prime Minister Jose Socrates lost a vote on fresh austerity measures to tackle the country's debt crisis and resigned on Wednesday.

"Strong commitment to fiscal consolidation by both leading political parties is an important reason why the rating remains within the A range," Moody's said in a statement.

Rating agency Fitch downgraded Portugal to A- on Thursday, on a par with the Moody's rating and four notches into investment grade. However, Standard and Poor's cut Portugal on Friday to BBB, two notches below the others, and warned of further cuts.

Portuguese borrowing costs on 10-year debt rose above 8 percent for the first time since the launch of the euro currency in reaction to the downgrades.

(Reporting by William James; Editing by Ruth Pitchford)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.