Fitch downgraded Portugal's credit rating to junk status on Thursday, citing large fiscal imbalances and high indebtedness in the country as the reason.
The rating agency said Portugal's long-term credit was no longer consistent with an investment-grade rating and cut it one notch from BBB– to BB+.
Fitch said in light of the worsened European outlook, it expects GDP in 2012 to contract by 3%. However, it said significant structural reforms under its Troika programme should leave Portugal in a mo
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