* Touches low of C$1.0182 to US$, or 98.21 U.S. cents
* Stocks sag amid increased sovereign debt worries
* Bonds higher across the curve (Adds details about S&P downgrades, quotes)
By Jennifer kwan
TORONTO, April 27 (Reuters) - The Canadian dollar tumbled more than 1 U.S. cent on Tuesday amid growing fears over sovereign debt levels in Europe, after Standard & Poor's downgraded Greece's debt rating to junk status.
The Canadian currency fell to a low of C$1.0182 to the U.S. dollar, or 98.21 U.S. cents, after S&P cut Greece's rating, citing concerns about the euro zone member's ability to implement reforms to slash its massive debt. [ID:nLDE63P1EG]
The ratings agency also downgraded Portugal on worries about its ability to deal with high debt levels given its weak economic outlook. [ID:nWNA9638]
"Now it's markets just moving into a risk-averse territory. Any asset that is sensitive to risk is getting clobbered and that includes a lot of the commodity currencies, including (the Canadian dollar)," said David Watt, senior currency strategist at RBC Capital Markets.
At 12:24 p.m. (1624 GMT), the Canadian dollar
U.S. stocks slid to session lows on Tuesday after the credit ratings of both Greece and Portugal were cut, escalating worries about sovereign debt levels. [.N] [MKETS/GLOB].
The aversion to risk pushed down the price of oil, a key Canadian export, below $83 a barrel. [O/R]
Canadian bond prices were higher across the curve, following U.S. Treasury issues, which rose on euro zone debt concerns. [US/] (Reporting by Jennifer Kwan; editing by Rob Wilson)