Moody’s cuts seven Portuguese banks on rising risks

LONDON, April 6 (Reuters) – Moody’s cut the credit ratings
of seven Portuguese banks on Wednesday, pointing to lenders’
weakened financial state and the likelihood a government
struggling with debt would limit support for them.
The decision, including downgrades by one or more notches of
the senior debt and deposit ratings of seven banks and
downgrades of the standalone credit assessment for five of those
banks, comes after Moody’s cut Portugal’s sovereign rating on
Tuesday.

Portugal’s caretaker cabinet is under increasing pressure to
seek an international bailout and its main banks have threatened
to stop buying government debt, concerned about the impact on
their own finances of holding the increasingly low-rated bonds.

“The rating actions follow the downgrade of Portugal’s debt
ratings and also reflect the weakened standalone credit profile
of most Portuguese banks,” Moody’s said in a statement.
(Reporting by Patrick Graham; London Treasury Desk, +44 207 542
4441)

Moody’s cuts seven Portuguese banks on rising risks