Moody's downgrades Portuguese debt to 'junk' status

Moody's has downgraded Portuguese debt to 'junk' status on fears it will need a second bail out just months after it received €78bn.

Portuguese long-term government bond ratings have been downgraded to Ba2 from Baa1, or ‘junk status' and Moody's assigned the country a ‘negative outlook'. The credit rating agency has moved after warning there were concerns surrounding the money Portuguese banks have lent to Greece and when this will be repaid. Moody's said in a statement there was a "growing risk that Portugal will require a second round of official financing before it can return to the private market and the increasing possibility that private sector creditor participation will be required as a pre-condition." M...