The debt of Portugal has been downgraded

Fears of economic meltdown in Europe’s PIGS economies remain, as Moody’s downgraded the debt of Portugal yesterday by two notches, down to an A1 rating.  [PIGS is short for Portugal, Italy, Greece and Spain, and is an apt name given the huge appetite for debt in those countries.]  Importantly, Moody’s has designated the rating as “stable.”  In other words, Moody’s feels at this time that the situation there is likely to tread water for awhile.  This news was expected and likely will not be a shock to the financial community.

Jason