Moody`s affirms Portugal rating with negative outlook
Baku, March 28 (AZERTAC). Moody`s Investors Service on Thursday affirmed Portugal`s Ba3 rating but kept it on negative outlook, citing high government debt and the country`s vulnerability to regional shocks such as the Cyprus crisis.
The agency also noted the country`s weak economy, which was at risk of contracting by even more than first feared this year.
Still, Moody`s said Portuguese policymakers had made significant progress toward fiscal consolidation and structural reforms, and were nearer to regaining market access.
The agency said it might downgrade Portugal`s sovereign ratings in the event of a further significant rise in the government`s debt ratio or an increase in borrowing costs.
Conversely, Moody`s would consider raising the rating if the government managed to stabilize its debt-to-GDP ratio.
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