Fitch ratings lowered Portugal's credit rating by one notch sending it to junk status, referring that the country's large fiscal imbalances, high indebtedness across all sectors, and adverse macroeconomic outlook mean the sovereign's credit profile is no longer consistent with an investment-grade rating.

The rating is now BBB-minus instead of BB-plus with negative outlook that indicates that further cut could take place, especially as the adoption of austerity measures will weigh on growth and bank asset quality.