LONDON (AP) — Ratings agency Moody's downgraded Portugal's government debt on Tuesday, citing growing risks the country will require a second rescue package because it cannot meet its debt reduction targets.
Moody's Investors Service cut its rating by one notch to Baa2 from Baa1 and said in a report that it was increasingly unlikely that Portugal would be able to borrow money on capital markets in 2013, as planned.
As a result, it said the country would probably require more financial aid — on top of the euro78 billion ($113 billion) bailout it received earlier this year — with private banks taking some losses.
Portugal has been shut out of bond markets for long-term loans since April, when its government collapsed, heightening investors concerns about its financial future.
http://news.yahoo.com/moodys-downgrades-portugal-fear-2nd-bailout-191239898.html
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