NEW YORK, Sept 18 Standard & Poor's on Wednesday
warned Portugal that it could cut its credit rating, placing it
on a shorter-term negative outlook citing rising risks to the
economy from its fiscal consolidation program.
S&P put the BB sovereign foreign currency credit rating
outlook on its CreditWatch negative list, meaning it will make a
final decision within an approximate 90 day time frame.
"The CreditWatch placement reflects our view that there are
rising risks to Portugal's ambitious fiscal consolidation
objectives and an increased likelihood of noncompliance with the
current EU/IMF program," the firm said in a statement.
"Risks include further challenges to fiscal and reform
measures by Portugal's Constitutional Court,
weaker-than-expected economic performance, and a resurgence of
political tension leading to delays in 2014 budget or program
reviews," S&P said.
Moody's Investors Service rates Portugal one notch lower at
Ba3 with a negative outlook while Fitch Ratings has Portugal one
notch higher than S&P at BB-plus with a negative outlook.