Fitch Ratings and China’s Dagong Global Credit Rating lower Portugal’s credit rating

25 November 2011

Lisbon, Portugal, 25 Nov – Credit rating agency Fitch Ratings has lowered its rating on Portugal by one notch from “BB+” to “BBB-“ lowering Portuguese sovereign debt to junk status, the agency said in a statement.

“Fitch finished its review of the fourth quarter for Portugal’s sovereign debt. Large budget imbalances, high debt level and adverse macroeconomic projections mean that the sovereign debt profile is no longer consistent with an investment grade rating,” the ratings agency said.

The outlook was maintained at negative, which means that the rating could suffer further cuts.

However, the agency decided to remove the classification of “review with negative implications,” which had been in place since April, 2011, indicating that there are unlikely to be further reviews in the short term (three months).

Fitch Ratings thus joined Moody’s, which on 15 July of this year, rated Portugal’s debt at “Ba2,” which is considered to be junk status, whilst also maintaining a negative outlook.

On Thursday Chinese rating agency Dagong Global Credit Rating also lowered its rating for Portugal to “BB+”, which reflects a “medium-low” investment quality, with the rating on negative outlook. (macauhub)