Portugal, greece debt ratings could worsen

Both Portugal and Greece could see their debts further downgraded in the next two months, ratings agency Standard & Poor's warned on Wednesday, depending on what happens at a crucial European leaders' summit later this month.

The agency said in a report it is maintaining its A- rating on Portugal and its BB+ rating on Greece but has kept both countries on so-called "CreditWatch with negative implications."

Heavily indebted Greece accepted an EU-IMF bailout last year, as did Ireland, and ailing Portugal is widely expected to follow suit even though it managed to raise another 1 billion ($1.38 billion) at a bond sale Wednesday. S&P said it could lower the ratings on both Portugal and Greece within the next two months after analysing an expected new European bailout mechanism. 

Source: Ninemsn