Moody's downgrades Portugal rating to A1

13th July 2010, Comments 0 comments

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.

It also expressed concern about Portugal's growth prospects.

Portugal's debt had previously had an AA2 rating.

© 2010 AFP

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