News Headline Summary

Fitch affirms Portugal at BB+; outlook negative

- The affirmation reflects the progress made under the IMF-EU programme to date, but rising political, implementation and macroeconomic risks warrant the maintenance of Negative Outlook.
- Cross-party commitment to its implementation and social cohesion are being tested by the 2013 budget, while institutional constraints could limit the governments room for manoeuvre.
- Institutional gridlock leading to policy paralysis would be negative for the rating.

Update details:

- Moody's have Portugal at Baa3, the highest rating of all three rating's agency, and S&P at the lowest, at BB. Both S&P and Fitch have Portugal rated as non-investment grade (junk).

Print 17:20, 12 Nov 2012 - Rating Agency comments - Source: Newswires