Economy

Moodys complicates the renovation of the Portuguese economy



After the rating agency Moodys has lowered her assessment for Portugal in the middle of the last week unexpectedly, it hailed criticism of European politicians. Thus Oliver Rehn, currency commissioner of the EU, about his speaker allowed to announce that this downgrading should be used to question basically the behaviour and the forecast ability of rating agencies. To this statement which left much to be desired in clearness nothing the politician felt constrained before the background that development of Portugal was estimated by the EU commission up to now positively. Thus it was welcomed that the new government exerts itself put into action the savings programme of the country further quickly.

The rating agency Moodys had classified Portuguese state loans on the last Tuesday four steps worse than up to now, so that now the recommendation “unsuitably for an investment” is valid for these papers at junk level. With it the way of Portugal might have become longer and more difficult back to the capital market ability still a good piece. The judgment of the rating agency is based on the appraisal that Portugal could need new means after 2013 if the support loans firmly said up to this time are used at the rate of 78 milliard euros.

The big influence of the rating agency became immediately clear subsequently by the short fall of Portuguese banking shares which lost between five and seven percent to value. A little surprisingly it is in view of these developments that demands for a regulation of the activity of three big rating agencies, standard & Poor’s, Moodys and Fitch rating, were expressed once more. In particular the EU-commission president José Manuel Barroso and German Minister of Finance Wolfgang Schäuble require that measures are took by European side to limit the power of these rating agencies.