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Entries in Portugal (4)

Tuesday
Feb142012

Moody's Downgrades Six European Countries, Warns Three Others

Scott Eells/Bloomberg via Getty Images(LONDON) -- Moody's downgraded the credit ratings of six European countries on Monday and warned that three others, including Britain, could be next.

The credit ratings agency cut Italy's grade to A3 from A2, Spain's to A3 from A1, Portugal's to Ba3 from Ba2, Malta's to A3 from A2, Slovakia's to A2 from A1, and Slovenia's to A2 from A1.  All six countries were also given negative outlooks.

Meanwhile, Moody's gave negative outlooks to the United Kingdom, France and Austria, meaning that the countries could lose their AAA ratings in the future if the economy remains weak.

Monday's downgrades and warnings are a reminder that the region continues to be plagued by debt problems.

Copyright 2012 ABC News Radio

Wednesday
Jul062011

Moody's Knocks Down Portugal's Credit Rating to 'Junk'

Comstock Images/Thinkstock(NEW YORK) -- On Tuesday, Moody's downgraded Portugal's debt rating to "junk" status, setting the stage for a poor opening of the U.S. Stock market on Wednesday.

Moody's cut the economically troubled Iberian nation's long-term debt rating down four steps from Baa1 to Ba2, which is considered junk. Portugal's short-term debt rating was also knocked down from prime-2 to not-prime.

The news has electrified financial markets, and is expected to cast further speculation over the EU's ability to salvage Euro-Zone economies.

Copyright 2011 ABC News Radio

Thursday
Mar242011

Stock Averages Up Amid Higher Oil Prices, Worries Overseas

Comstock/Thinkstock(NEW YORK) -- Despite soaring oil prices, a virtual civil war in Libya and new debt worries in Europe, the stock market is still going up.

Future are up Thursday morning after the Dow gained 67 points the day before.  The Nasdaq and S&P also saw gains Wednesday, adding 14 points and four points, respectively.

In Europe, averages are mostly higher Thursday morning amid worsening financial problems in Portugal.  A bailout could be coming soon to Portugal after its government resigned.  Borrowing costs there are up, and the country's opposition parties rejected a plan to cut the deficit by hiking taxes and reducing spending.  Also, the interest rate on Portugese ten year bonds soared to 7.6 percent.

Meanwhile, as the unrest in Libya continues, oil prices are now around their highest in recent weeks, standing at $106 a barrel.

Copyright 2011 ABC News Radio

Friday
Nov262010

Portugal Adopts Draconian Budget Cuts, Tries to Avoid Bailout

Photo Courtesy - Getty Images(LISBON, Portugal) -- Portugal tried desperately Friday to avoid following Ireland in requiring a financial bailout, adopting a budget designed to slash its deepening deficit and prevent fiscal meltdown.  The Portuguese parliament adopted the 2011 plan lawmakers hope will reduce its deficit from 7.3 percent of this year's annual output to 4.6 percent next year. 

Portugal's Finance Minister, Fernando Teixeira dos Santos, told lawmakers the entire euro zone faces a big challenge.  "The attack of the markets on sovereign debt, in particular against so-called peripheral countries, is a test of the willpower and the capacity of the countries targeted, but above all the euro zone to face up to the crisis."

The budget would save five billion euros, or nearly $7 billion, through tax hikes and spending cuts.  Among the targeted spending, wages of public workers.  That prompted a massive general strike on Wednesday.

Portuguese officials and leaders from other countries deny there is specific pressure on Portugal to accept the same kind of "bailout" Ireland requested just days ago from the European Union and the International Monetary Fund.  Experts suggest that if Portugal did ask for help, it would ease the financial pressure on other countries, such as Spain, and perhaps keep the euro zone debt crisis from spiralling further out of control.

Copyright 2010 ABC News Radio







ABC News Radio