DBRS Is ‘Comfortable’ With Portugal’s Rating; Bonds Pare Decline
- Firm’s co-head of sovereign ratings points to ‘stable trend’
- Portuguese 10-year bond yield drops from highest this month
Europe, We Have a Problem
This article is for subscribers only.
DBRS Ltd. said it’s “comfortable” with its credit rating for Portugal, allaying concern the company will downgrade the nation, which would threaten its eligibility for the European Central Bank’s quantitative-easing plan.
The BBB (low) grade “has a stable trend so that is a clear indication that we are comfortable with the current level,” Fergus McCormick, chief economist and co-head of sovereign ratings at DBRS, said in an interview on Wednesday. Portuguese bonds pared a decline following the comments, with the nation’s 10-year bond yield falling from its highest level this month.