http://www.washingtonpost.com/world/europe/fitch-downgrades-portuguese-debt-to-junk-status-cites-poor-economic-prospects-despite-bailout/2011/11/24/gIQA7cPYrN_story.html?hpid=z4
Fitch downgrades Portuguese debt to junk status, cites poor economic prospects despite bailout
By Associated Press, Updated: Thursday, November 24, 6:13 AM
LISBON, Portugal — International ratings agency Fitch has downgraded Portugal’s debt to junk status due to its high debts and poor economic prospects.
Fitch said Thursday it is downgrading Portugal one notch, to BB+ from BBB-.
The agency said it took the measure because of Portugal’s “large fiscal imbalances, high indebtedness across all sectors, and adverse macroeconomic outlook.”
The move is another blow to Portugal’s efforts to restore its fiscal health after taking a €78 billion ($104 billion) bailout earlier this year to avoid bankruptcy.
The government is cutting spending and hiking taxes — measures which triggered a general strike Thursday.
