Moody’s may decrease the Portugal’s credit rating with 2 stages

Viliyana Filipova — Sun, 02 May 2010 11:28:42 +0000

The International rating agency Moody’s will review over the next three months the credit rating of Portugal with a possible decrease in the direction of one or two degrees, said in a statement the agency, quoted by RIA Novosti. Now Portugal’s credit rating is “Aa2″. The intention of Moody’s is continuing to assess the situation to deteriorate to government debt. In the view of analysts from the rating agency, taking into account the small size of the economy of Portugal and its poor growth performance of these public debt may not fully reflect the rating of “Aa2″. At the end of April ratings agency Standard & Poor’s lowered the long-term credit rating of Portugal with two degrees – from “A +” to “A-” to “negative” outlook. At the end of 2009 government debt of Portugal was up nearly 77 percent of gross domestic product (GDP) of the country, for comparison, the external debt of Greece has 120% of GDP. Meanwhile, analysts note that in Portugal the threat can come from many large private sector debt, which exceeded the indicator for Greece. According to forecasts by the European Commission (EC) GDP growth this year Portugal will be 0.5 percent and for 2011 – 0.7%.
At the same time, public debt will continue to increase, says the EC, at the end of 2010 will be approximately 86% of GDP at the end of 2011 will reach 91 percent of GDP.

EU will resque Greece in extreme cases

Viliyana Filipova — Sun, 31 Jan 2010 16:54:48 +0000

The European Union has made clear that Greece will not abandon and leave the growing crisis with the country’s obligations to endanger the eurozone, writes Financial Times. “It is clear that economic policies are not only a national issue, but also Europe, told reporters in Brussels, European Commission President Jose Manuel Barroso. According to senior EU officials in Greece last resort may receive emergency assistance from the governments of the euro area and by the EC, but without the participation of the International Monetary Fund. Euro zone countries and European authorities did not specify how Greece would help, since they fear that it will reduce pressure on Greece to cope alone with their problems and that would confuse an already turbulent financial markets. Immediate priority for the country to show that it is serious in its intention to reduce public spending, improve tax collection, to publish reliable financial and statistical data to deal with corruption, EU representatives stressed.
The Greek Prime Minister George Papandreou accused the “malicious forces” in putting the rumors that Athens sought funding in China and elsewhere. He stressed that Greece has demonstrated its ability to raise funds through bond issue for 8 billion, released Monday, which was strongly labeled.

Financial Communique » European Commission

Moody’s may decrease the Portugal’s credit rating with 2 stages

EU will resque Greece in extreme cases