Fitch Downgrades Portugal's Sovereign Credit Rating

International rating agency Fitch 24 announced that due to Portugal's fiscal imbalance, various departments debt High and the economic outlook deteriorated. Fitch has downgraded Portugal's sovereign credit rating from BBB- to BB+. Fitch's BB rating is known as junk level by the market.

Fitch also set Portugal's sovereign credit rating outlook as "negative", which means Portugal will be further downgraded in the future.

Fitch said the deterioration of the economic environment has put more challenges to the government's deficit reduction measures. Fitch also believes that the Portuguese government can achieve its fiscal objectives for the next two years, but its economic prospects and poor spending control make it more risky.

In addition, Portugal's state-owned corporate debt rose this year to become the country's financial sector. risk One of the important reasons. Fitch said that in view of these reasons, Portugal is likely to introduce more adjustment measures in 2012.

Portugal is the third euro zone country to accept external assistance after Greece and Ireland. Portugal and international currency The agreement reached by the fund, the European Union and the European Central Bank will provide 78 billion euros (US $107 billion 300 million) in financial aid in three years. The condition is that the ratio of fiscal deficit to gross domestic product in 2011 will be reduced to 5.9% from 9.8% in 2010. In 2012, Portugal will further reduce to 4.5% in 2012 and reach the 3% target set by the EU in 2013.