s company (Standard& Poor""s Corp.) Tuesday (29th), Portugal sovereign credit ratings from "BBB/A-2" down to "BBB-/A-3", while Portugal removed rating from negative watch list, Outlook as negative. Portugal go against the evaluation system of rating remained at "AAA" does not change.
cut Portugal rating reflects standard and poor's on the Council of Europe (European Council) between 24th and final Declaration of the Conference. The statement confirmed that standard and poor's expectations, that is, sovereign debt restructuring may be Portugal obtained the European stabilisation mechanism (European Stability Mechanism) prerequisite for loans, while the European stabilisation mechanism will be first in priority in the order of reimbursement of the loan unsecured Government bonds. Poor's believes that loans for European stabilisation mechanism of the sovereign State of commercial creditors will be adversely affected by these two factors.
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Yen exchange rate continuous sixth day go fell economic expected boost risk preference G20 Nanjing meeting does not on exchange rate Japan earthquake Hou investigation display economic status deterioration dollars fell fell over reverse predicted when cashed Greek Portuguese rating then was cut Europe debt situation tension AUD on dollars create 29 years high Japan the shouldn't spent reserves [RMB premium][market Center]standard Poole think , Portugal continued sluggish domestic demand will puts pressure on the financial situation in the country, so the Outlook as negative. Poor's last week Portugal rating downgrades of two, the country's rating also face the risk of losing investment-grade status for the first time.
Portugal Central Bank 29th said Portugal 2011 economic contraction will be higher than previously expected, the 2012 economic growth will be lower than previously expected, due to government spending cuts and decline in consumer demand.
Portugal hint, Portugal Bank on the international wholesale debt market continued to experience a particular limit, the country's economic recovery over the coming years and the overall level of Europe a certain gap, but can still benefit from external demand. Today
28 the standard and poor's said, had been cut five Portugal Bank and two long-term and short-term ratings of the relevant subsidiary. At the same time, standard and poor's will the Bank (except for the Millennium bcp) removed all short-term rating from negative watch list. All long-term rating on the negative watch list is still placed in a negative watch list.
according to two people familiar with the European official said on 25th, Portugal relief fund scale may be a maximum of 70 billion euros (about $ 99 billion), because the country's sovereign credit rating downgrades threat will deepen Portugal's debt predicament.
