Swiss Economicblogs.org
A suspension of bond purchases by the ECB in the event of downgrade would be huge risk to outlook. Ratings agency DBRS is due to issue an update of its rating for Portugal on Friday, 21 October. Among the four rating agencies used by the ECB, only DBRS still has an investment-grade rating for Portuguese sovereign bonds (OTs). Even a one-notch downgrade by DRBS would push its rating of Portugal down to speculative status, and would effectively render Portuguese sovereign bonds ineligible for...
Read More »Portugal may avoid ratings downgrade, but medium-term risks remain
