Fitch Affirms Portugal At 'AA'; Downgrades Outlook

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Thursday, the Fitch Ratings affirmed Portugal's Long-term foreign currency Issuer Default Rating or IDR at 'AA'. The agency affirmed long-term local currency IDR at 'AA', short-term foreign currency rating at 'F1+' and country ceiling at 'AAA'.

But, the agency downgraded outlooks on the long-term IDRs to negative from stable. The downgrade reflects concern about the potential impact of the global economic crisis on the public finances over the medium term. The Fitch sees a high possibility of public debt/GDP rising to over 80% by 2011.

Douglas Renwick, Associate Director in Fitch's Western Europe Sovereign team said, "Although Portugal has not been disproportionately affected by the global downturn, its weak starting position has, as reflected by the Negative Outlook, left its sovereign rating more vulnerable to this severe economic and budgetary shock."

Thursday, the Fitch Ratings affirmed Portugal's Long-term foreign currency Issuer Default Rating or IDR at 'AA'. (Market News Provided by RTTNews)