S&P warns of further Portuguese ratings downgrade

Standard & Poor’s warned Monday that it could further downgrade Portugal’s credit rating by a notch this week, after lowering it by two levels last week following the government’s resignation.

“Based on current information and expectations, we could lower our ratings on Portugal again — by another notch,” the ratings agency said in a statement.

That could happen this week, S&P added, depending on the outcome of European discussions on the design of the European Stability Mechanism (ESM), which is being set up to provide support loans to eurozone states in financial distress.

At an EU summit in Brussels on Friday, Socrates insisted that his country does not need a financial rescue.