Portugal May Be Cut by Moody’s on ‘Sluggish’ Growth

Portugal’s bond rating may be downgraded one or two levels by Moody’s Investors Service because of concerns that budget cuts will worsen the country’s “sluggish” economic growth.

“Portugal’s solvency is not in question,” Anthony Thomas, Moody’s London-based lead analyst for Portugal, said in a statement today. “But the likely deterioration in debt affordability over the medium term and ongoing concerns about the economy’s ability to withstand fiscal consolidation and private-sector deleveraging mean its outlook may no longer be consistent with an A1 rating.”