S&P downgrades Portugal for second time

Credit rating agency Standard & Poor's has downgraded Portugal for the second time, on the basis it may be unable to repay its debt, the Financial Times reports.

Portugal's long-term credit rating has been downgraded from A- to BBB, the lowest attributed by any rating agency, bringing Portugal's credit standing closer to junk status. The outcome of eurozone negotiations on the bailout fund could force Portugal's rating down further, says S&P. Fitch also downgraded the country's long-term rating by two notches from A+ to A- following the resignation of Prime Minister Jose Socrates.