Portugal’s Credit Rating Is Cut to Junk by Fitch on Debt
November 24, 2011, 8:39 AM EST
Nov. 24 (Bloomberg) — Portugal’s credit rating was cut to below investment grade by Fitch Ratings due to the country’s rising debt level and weakening economy.
The long-term rating was lowered one level to BB+ from BBB- with a negative outlook, Fitch said today in an e-mailed statement. Portuguese 10-year bonds fell after the announcement, with the yield at 12.14 percent at 1:09 p.m. in Lisbon.
Portuguese Strike Grounds Flights, Shuts Metro
Portugal’s first general strike in a year has grounded flights and shut Lisbon’s metro service as unions protest austerity measures agreed to by the government to gain an international bailout.
Lisbon’s metro will be closed until 1 a.m. tomorrow. Flights departing from Lisbon and Oporto this morning to destinations including London, Frankfurt and Rio de Janeiro have been canceled, according to the website of airport operator ANA- Aeroportos de Portugal SA. State-owned railroad operator CP- Comboios de Portugal says it expects serious disruptions.