Portugal's credit rating downgraded

Portugal's credit rating has been downgraded by the Fitch agency on concerns over its debt levels.

While Portugal passed an austerity budget aimed at cutting its deficit earlier this month, Fitch has still dropped the country's rating from AA to AA-. The downgrade heightened concerns about the health of some of Europe's heavily indebted economies, with Greece's major debt problems remaining unresolved. Fitch's announcement has led the euro down 1% against the dollar and 0.5% on the pound.