LOC15:46
12:46 GMT
BRUSSELS, July 6 (KUNA) -- European Commission President Jose Manuel
Barroso Wednesday expressed his regret over yesterday's decision by credit
rating agency Moody's to downgrade Portuguese debt to junk status.
"I deeply regret the decision of one rating agency to downgrade the
Portuguese sovereign debt and I regret it both in terms of its timing and its
magnitude. It adds speculative elements to the situation," he told a press
conference in the European Parliament in Strasbourg.
"European Union decisions on financial matters are not based on market
players position but on the objective assessments of the European Commission
and the European Central Bank," he said.
Moody's suggested that there is a "growing risk" that Portugal will require
a second bailout and that this will include some form of private sector
creditor participation.
Portugal has already been granted a EUR-78-billion bailout by the EU and
the International Monetary Fund (IMF).
Barroso, a former Portuguese Prime Minister, encouraged his country to
continue on the path defined by the EU and added "our institutions know
Portugal a little bit better," than the rating agencies. (end)
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