Draghi Says Portuguese Bonds Ineligible for QE If Downgraded
- DBRS review of sovereign rating scheduled for Friday, Oct.21
- ECB president says country’s reform progress should be noted
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Portugal’s debt would no longer be eligible for purchase under the European Central Bank’s quantitative-easing program if the country’s credit rating is downgraded on Friday, President Mario Draghi said.
A decision by Canadian rating company DBRS Ltd. to take away the country’s only investment-grade rating would disqualify Portuguese sovereign bonds from asset purchases and use as collateral in refinancing operations, Draghi said at a press conference in Frankfurt following the Governing Council’s monetary-policy meeting. A rating review is due on Oct. 21.