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Moody’s Investors Service has today downgraded the debt ratings of seven Portuguese banks.

by ZH

Today’s rating actions were triggered by the downgrade of the rating of the Republic of Portugal to Ba2 from Baa1 last week.

The following banks have been downgraded:

(i) Caixa Geral de Depositos (“CGD”): long-and short-term senior unsecured debt and deposit ratings were downgraded to Ba1/Not-Prime from Baa1/Prime-2.

(ii) Banco Espirito Santo (“BES”): downgraded to Ba1/NP from Baa2/P-2.

(iii) Espirito Santo Financial Group (“ESFG”): downgraded to Ba2/NP from Baa1/P-2.

(iv) Banco [...]

Just Released By Moody’s: A Further Sovereign Downgrade For Portugal Likely

Just released by Moody’s:

On March 23, 2011, the Portuguese parliament rejected the government’s proposed austerity package. Prime Minister José Sócrates subsequently resigned, which, in our opinion, increases policy uncertainty and heightens Portugal’s refinancing risk.
We have lowered our long-term sovereign credit rating on Portugal by two notches to ‘BBB’ from ‘A-’. The ‘A-2′ short-term sovereign credit rating is unchanged. All ratings remain on CreditWatch [...]