Moody's Cuts Portugal Debt Four Levels to Junk, Warns of Second Bailout; Reflections on "Political Will"

"It can't be contagion because we all know "Greece Has Been Saved". Nonetheless Moody's cuts Portugal to junk, warns of second bailout

Moody's Investors Service slashed Portugal's credit rating by four levels, to Ba2, causing the debt-laden Iberian country to follow Greece into junk territory below investment grade. Greece is rated much lower, at Caa1.Moody's said there is an increasing probability Portugal will not be able to borrow at sustainable rates in capital markets in the second half of 2013 and for some time thereafter.

There was a "growing risk that Portugal will require a second round of official financing before it can return to the private market, and the increasing possibility that private sector creditor participation will be required as a pre-condition," Moody's said..."

at  http://globaleconomicanalysis.blogspot.com/2011/07/moodys-cuts-portugal-debt-four-levels.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29