S&P downgrades Portugal and Greece

Standard & Poor’s cut Portugal’s credit rating to one level above junk status on the 29 March 2011 on concern that commercial investors would suffer under the terms of a Europe-led financial rescue agreed at the European Council, Brussels, 24-25 March 2011.

Greece also saw its ratings cut two grades to double B minus, three levels below investment grade.

S&P said the downgrades reflected the likelihood that the countries would have to seek financial assistance from European Union rescue funds under terms that would be detrimental to commercial investors.

ESO: Background information: Portuguese weary of ‘insults and blackmail’ http://www.europeansources.info/record/portuguese-weary-of-insults-and-blackmail/

ESO: Background information: Eurozone periphery borrowing costs soar http://www.europeansources.info/record/eurozone-periphery-borrowing-costs-soar/

ESO: Background information: Moody’s slashes Greek debt rating by three notches http://www.europeansources.info/record/moodys-slashes-greek-debt-rating-by-three-notches/

---