Moody's Investors Services placed Portugal bonds under review for possible downgrades, where expectations signal that the country's credit rating will be downgraded by one or two levels on sluggish growth and spending cuts implemented by the government.

Moody's lead analysts Anthony Thomas stated that Portugal's solvency is not in question, adding that But the likely deterioration in debt affordability over the medium term and ongoing concerns about the economy's ability to withstand fiscal consolidation and private-sector deleveraging mean its outlook may no longer be consistent with an A1 rating.

In July, Moody's slashed Portugal's credit rating by two levels, taking it from A+ to A-.