S&P Removes Portugal From Creditwatch as Negative Outlook Kept

Portugal’s long-term government bond rating was removed from “creditwatch” by Standard & Poor’s, reducing the risk of a downgrade, as the country sticks to a European Union-led bailout program.

“In our view, the coalition government remains committed” to the program, S&P said in a statement today. The agency will keep a negative outlook on the country’s BB rating, “reflecting what we view as ongoing social and political risks associated with deleveraging efforts by Portugal’s highly indebted private and public sectors, as well as financing uncertainties related to Portugal’s exit” from the bailout, expected in May.