NEW YORK (CNNMoney.com) -- Portugal is the latest European nation to get slapped with a downgrade on its debt. On Tuesday, Moody's Investors Services took Portugal's bond rating down a few notches, citing a foundering economy.
Moody's downgraded Portugal's government bond ratings to A1 from Aa2, saying this stemmed from "ongoing deterioration in the country's debt metrics."
"This deterioration came about due to the government's anti-crisis measures and the operation of the budget's automatic stabilizers, such as higher unemployment benefits, when the economy went into recession," wrote Anthony Thomas, vice president and senior analyst in Moody's sovereign risk group.
The rating agency also said the country's economy is "likely remain relatively weak unless recent structural reforms bear fruits over the medium to longer term."
Going forward, Moody's defined Portugal's rating outlook as "stable, with the upside and downside risks evenly balanced."
Moody's had placed Portugal's bond ratings on review for possible downgrade on May 5. Back in October 2009, the rating agency had changed the outlook on the Aa2 to negative from stable.
Portugal is a member of the so-called PIGS, a club of economically woeful nations in Europe, including Italy, Ireland, Greece and Spain.
On April 27, Standard & Poor's downgraded the sovereign ratings of Greece and Portugal to junk status, citing weak "macroeconomic structures." Moody's had downgraded Greece's government bonds just days before.
|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||3.69%||3.76%|
|15 yr fixed||2.80%||2.82%|
|30 yr refi||3.69%||3.76%|
|15 yr refi||2.83%||2.83%|
Today's featured rates:
Anheuser-Busch has been the exclusive beer advertiser featured during the Super Bowl since 1975, and it's spent more on Super Bowl advertising than any other company for the last five years in a row. More
It was the first offer the South American nation has made to the holdouts which in Argentina are called "vultures." More
Laurie Segall sits down with Foursquare's new CEO Jeff Glueck to discuss the company's latest round of funding at a lower valuation, and their hybrid consumer/enterprise business model. More
Nonprofit JumpStart has launched a new $10M fund that will only invest in women and minority-led startups. The catch: You have to move to Ohio. More
Portland, Oregon, is often described as the last affordable cool city on the West Coast. But as more people move to the city, it's becoming increasingly unaffordable. More