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BREAKING NEWS

Portugese bonds reach junk status

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Portugese bonds reach junk status

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Fitch Ratings has downgraded Portugal’s long term foreign and local currency bonds to BB+ from triple-B, from investment grade to junk. Short term, senior unsecured debt and commercial paper were also downgraded.

Fitch has also lowered growth forecasts for 2012, when it now expects GDP to contract by three percent.

Rival raters Standard and Poor still give Portugal investment status, while Moody’s thinks the country is in an even worse state, rating it Ba2.