London, United Kingdom, 14 Feb – The Moody’s risk assessment agency has downgraded the ratings of Portugal and five other European countries and changed to negative the outlook for three others with the maximum Aaa rating.
Information released on Monday in London indicates that Portugal’s debt was downgraded from Ba2 to Ba3, remaining in the speculative or junk investment category. The outlook for Portugal and the other countries in question remains negative.
Risk ratings were also downgraded for Spain (A1 to A3), Italy (A2 to A3), Slovakia (A1 to A2), Slovenia (A1 to A2) and Malta (A2 to A3). Moody’s also changed to negative the outlook for the maximum Aaa rating of the United Kingdom, France and Austria.
Uncertainty regarding the amount need to overcome the crisis, increasingly weak economic prospects that threaten the fulfilment of national austerity plans needed to increase competitiveness, deteriorating market confidence and its effect on bank financing conditions are some of the reasons given by Moody’s for the downward adjustment. (macauhub)