Portugal: The debt rating at risk of being degraded.

Keywords: Notation, Degradation, PORTUGAL, PSI 20, MOODY'S.

Rating agency Moody's is considering in turn degrade "within three months" to come the debt rating of Portugal. Moody's Regrets weak growth prospects for long-term.

A week after degradation by Standard Poor's years of Portugal's sovereign ratingMoody's suggests a possible downward revision in the rating of the long-term debt of the country, currently Aa2, "one or two notches," and that "within three months ahead."
The rating agency, which states that the note is Portuguese under review since October 2009, deplores the recent deterioration of the country's public finances and weak growth prospects in the long term.
"We sent a signal that it is possible and, I must say, statistically, there is a strong probability that if we have placed under review for a breakdown, we went to the degradation ", said Anthony Thomas Vice-President of the division" Sovereign risk "by Moody's.
Anthony Thomas added that the agency still planned to meet with Portuguese authorities in the three-month review of sovereign rating to discuss the austerity program, including recent proposals to implement this year measures originally planned for 2011.

A contagion of increasingly plausible:
Fears of contagion from Greek case are increasingly felt. In the crosshairs, Portugal and Spain, sEcouis Tuesday by rumors - denied - lowering rating from Fitch and Moody's .
In Lisbon Stock Exchange Index (PSI 20) still yields 2.87%, to 6,803 points on Wednesday to 15.30 after suffering a decline of 4.21% Tuesday. Across Europe financial markets are in turmoil.
The euro hit a new low of more than one year 1.2805.
This undermines a new low investor sentiment, while the European Commission has revised upwards the forecast deficits of the country in 2010, now expected at 8.5% of GDP after a record 9.4% of GDP 2009. Growth is nevertheless expected a bit better than previously estimated: 0.5% in 2010, against 0.3% originally anticipated.

The CDS at the highest:
Greek tragedy threatens to repeat itself: the cost, the financial markets, a guarantee against risk of default on its sovereign debt Portugal scored a new record Wednesday, just after the announcement by Moody's.
CDS (credit default swaps) to five years on the Portuguese debt mounted to 407 basis points (bps) against 344 on Tuesday's market close in New York.