suffering from debt of Greece and Portugal on Tuesday (29th) suffered a new blow After standard and poor's (Standard& Poor) cut its credit ratings of the two countries, due to his creditors may be at risk, and therefore significantly increase the cost of the loan.
biaopu Portugal rating to a level from the level above junk status only and Greece rating to below Egypt rating level. The rating agency noted that Europe exists to repay debt, after repayment of the assistance fund risks bond investors.
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biaopu analysts said Frank Gill, European leaders reached agreement last week, namely the European stabilisation mechanism (ESM) in 2013, replacing existing EU aid funds, then biaopu to lower ratings.
Gill said: "we think that this really was a turning point. We do think it's commercial debt holder is clearly negative. Our view is that this ability to repay commercial bond principal and interest of the two countries will be under pressure. "
Portugal rating has been downgraded again hit the country, in Portugal's Central Bank warned, the country needs substantial savings measures to ensure that budget targets are met.
Portugal authorities are trying to regain the confidence of investors last week, Portugal minority government resigned after the Congress refused to savings measures, many analysts expect the country will be like Greece or Ireland as needed financial aid.
