LISBON (Reuters) - Moody’s downgrade of Portugal’s debt rating was “hasty” and failed to take into account the full impact of the decisions to be approved at a European summit later this month, Treasury Secretary Carlos Pina was quoted as saying on Wednesday.
Moody’s late on Tuesday cut Portugal’s sovereign debt rating by two notches to A3 and said it might have to downgrade again given the impact of high borrowing costs and the difficulty of meeting tough fiscal targets.
“Moody’s decision seems to us hasty since it cannot incorporate the full effects of the decisions that will be taken at the next European Council,” Pina told state news agency Lusa.
European leaders agreed to increase the lending capacity of the European Financial Stability Facility (EFSF) rescue fund and allow it to buy bonds of distressed euro zone countries on the primary market last week and are set to finalise the deal at another summit on March 24-25.
Portugal’s debt agency IGCP will offer between 750 million euros (650 million pounds) and 1 billion euros of treasury bills on Wednesday, the debt-laden country’s first auction after the weekend deal brought some relief to the euro zone periphery.
Reporting by Shrikesh Laxmidas; editing by Patrick Graham