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International ratings agency Moody's cut Portugal's credit rating to A1 from Aa2 on Tuesday, casting doubt on the country's ability to weather its debt crisis.
Moody's says feeble growth and climbing debt levels over the past two years will continue to sap Portugal's fiscal strength. The government has enacted an austerity package to slash debt, but has struggled to find new sources of growth. There are also market concerns that Portugal's crisis could spread to other financially troubled eurozone countries.
The government debt agency is scheduled to auction at least 1 billion euro in bonds on Wednesday.
- Moody's debt rating may be cut by S 2010-06-30