Moody's downgrades Portugal

The ratings agency has slashed its long-term government bond rating from A1 to A3, with a negative outlook, according to the BBC. Moody's lowered its rating after warning the country's weak growth prospects and high debt levels will put off investors. It says in a statement: "The cost of market funding is likely to remain high until the deficit has been reduced to a substantial level and the prospects for economic growth have improved." It adds there was a risk the government would fail to meet its "ambitious" fiscal consolidation targets. According to central bank forecasts, th...