Portugal Downgraded as Fitch Says Recession May Loom

Portugal’s debt rating was downgraded one level by Fitch Ratings, which said the economy faces a “deteriorating” outlook as the government struggles to curb the euro region’s fourth-largest budget deficit.

The long-term foreign and local currency issuer default rating was lowered to A+, the fifth-highest level, from AA-, Fitch said in a statement yesterday. The outlook is negative. Fitch on March 24 cut the rating by one step to AA-. The company said in a separate report that there is a risk the European Union will need to rescue other euro member states after bailouts of Ireland and Greece.