Ratings agency Standard & Poor's has cut Portugal's sovereign debt rating to BB with negative implications. From their release:
On Sept. 18, 2013, Standard & Poor's Ratings Services placed its 'BB' long-term foreign and local currency sovereign credit ratings on Portugal on CreditWatch with negative implications. At the same time, we affirmed our short-term sovereign credit ratings on Portugal at 'B'.
The CreditWatch placement reflects our view that there are rising risks to= Portugal's ambitious fiscal consolidation objectives and an increased likelihood of noncompliance with the current EU/IMF program. Risks include further challenges to fiscal and reform measures by Portugal's Constitutional Court, weaker-than-expected economic performance, and a resurgence of political tension leading to delays in 2014 budget or program reviews.
Accordingly, we see an increasing risk that Portugal will not regain full capital market access early next year and that the Portuguese government will require a second official support program after the current program expires in June 2014. Portugal's creditworthiness appears to us, therefore, to increasingly depend on the support and flexibility of its official creditors.