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Monday, November 12, 2012
Fitch Affirms Portugal BB + rating, saying the country's deficit reduction progress
The rating agency Fitch Affirms Portugal rating to BB +, the relatively high level junk, the rating outlook remains negative. The agency refers to Portugal although the rise in unemployment, and the next year's Budget for political and social cohesion test, but the country is still in progress, the deficit reduction and external competitiveness enhanced.
Fitch means the Portuguese domestic demand is shrinking faster than expected, rising unemployment rate, political uncertainty or retrogression of the debt reduction plan, can make the country's rating was lowered. Fitch expects the Portuguese GDP will decline by 1.5% next year, followed by a gradual recovery.
If there is evidence to further reduce the country's deficit and the eurozone crisis relieve Portugal rating outlook may stabilize, Fitch said.
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