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Moody’S Downgrades Portugal

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http://ftalphaville.ft.com/blog/2011/07/05/613516/

Well, sort of. The full rationale behind Portugal’s downgrade to Ba2 from Baa1, with negative outlook, is pasted below.

Moody’s offers two main reasons. The second is Portugal’s ongoing high-debt-low-growth mash-up. This you know about.

The first reason is more interesting (and emboldened below). Moody’s writes that the “voluntary” involvement of private creditors in Greek bailout efforts bodes ill for Portugal’s ability to access capital markets. It suggests that bondholder burdensharing would be a precondition of future lending to Portugal, which in turn would scare off new creditors.

...

1. The growing risk that Portugal will require a second round of official financing before it can return to the private market, and the increasing possibility that private sector creditor participation will be required as a pre-condition.

2. Heightened concerns that Portugal will not be able to fully achieve the deficit reduction and debt stabilisation targets set out in its loan agreement with the European Union (EU) and International Monetary Fund (IMF) due to the formidable challenges the country is facing in reducing spending, increasing tax compliance, achieving economic growth and supporting the banking system.

Still 2 bailouts and they'll be good to go.

Easy peasy....

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hardly a surprise! they want their bailout money too

if loads of nations get downgraded together then i guess it wudnt be too bad would it- i suppose switzerland would be the only AAA rated nation left and maybe Hong Kong?

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The final indignity for a European country is when they slip down to Juncker status and start being lectured by jumped up small-time politicians from Luxembourg.

Edited by thecrashingisles

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Look pay attention all of you there will be no default just a roll-over of the debt, listen to our European masters after all they know best.

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  • 312 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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