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Marcus Ashworth

Portugal's Bond Upgrade Victory Looks Like a Shallow One

The debt rally is also a story of stumbles by Italy and Spain.
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Roberto Moiola/Getty Images/Robert Harding World Imagery

Portugal's economic recovery has received the all-important investment-grade stamp of approval from a second major ratings company. Fitch Ratings's double upgrade removes its junk status and follows S&P Global Ratings's one-notch move in September.

It's the first time that a ratings company has seen fit to award Portugal a double notch upgrade. This will allow Portugal back into some, but not all, of the major bond indexes.