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||3.82%||3.84%|
|15 yr fixed||3.16%||3.15%|
|30 yr refi||3.77%||3.81%|
|15 yr refi||3.14%||3.13%|
Today's featured rates:
More than 5% of DACA recipients have started their own businesses since enrolling the program, according to a recent survey. More
Republican Senators are parting ways with their counterparts in the House when it comes to the mortgage interest deduction. More
The company didn't disclose it to regulators or users. More
In 1998, Ntsiki Biyela won a scholarship to study wine making. Now she's about to launch her own brand. More
The Senate's proposed tax plan preserves the adoption tax credit. More