Moody's downgrades Portugal

Moody's has downgraded Portugal's government debt two more notches because of 'subdued' growth prospects.

The ratings agency has slashed its long-term government bond rating from A1 to A3, with a negative outlook, according to the BBC. Moody's has lowered its rating after warning the country's weak growth prospects and high debt levels will put off investors. It said in a statement: "The cost of market funding is likely to remain high until the deficit has been reduced to a substantial level and the prospects for economic growth have improved." It also added on there was a risk that the government would fail to meet its "ambitious" fiscal consolidation targets. According to central ...