Portugal Downgraded to A+ as Fitch Says 2011 Recession May Loom - Bloomberg

Portugal Downgraded to A+ as Fitch Says 2011 Recession May Loom - Bloomberg: "March 24 cut the rating by one step to AA-. The company said in a separate report that there is a risk the European Union will need to rescue other euro member states after bailouts of Ireland and Greece.

“The downgrade reflects an even slower reduction in the current account deficit and a much more difficult financing environment for the Portuguese government and banks than incorporated into Fitch’s previous rating and the negative outlook assigned on 24 March 2010, as well as a deteriorating near-term economic outlook,” the rating company said.

The Portuguese government plans to cut state workers’ wages and raise taxes to convince investors it can narrow the budget gap, after the Greek debt crisis led to a surge in borrowing costs"