Analyst Trevor Cullinan does not mince his words: "In our opinion, Portugal faces increasingly difficult challenges as it tries to boost competitiveness and lift persistently low growth. This, together with a heavy general government debt burden, leads us to believe that Portugal is unlikely to make the necessary structural improvements to remain in the 'AA' peer group."
While this is totally expected, sovereign CDS traders who were long Portugal CDS have taken half a day off today.
Next up: Belgium, Italy, Germany and the U.K.
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