Standard & Poor’s place’s Portugal’s sovereign debt rating on “negative watch”

6 December 2011

Lisbon, Portugal, 6 Dec – Credit rating agency Standard and Poor’s said Monday it had placed the rating for Portugal’s short term (BBB-) and Long term (A-3) sovereign debt on “creditwatch negative.”

The decision was explained by S&P’s concerns about the “potential impact in Portugal,” of the “deepening political, financial and monetary problems,” in the European Economic and Monetary Union.

In a statement, the rating agency said that, “in so much as these general problems of the Euro Zone constrain the possibility of credit to the economy, the prospects for growth for Portugal – and its prospects for a sustained reduction in its ºpublic debt ratio – may be affected.”

The financial news agency Monday issued a number of assessments on the prospects for several European economies, including Portugal. (macauhub)