Portugese Debt Downgraded

    Workers from Viana do Castelo shipyards parade to the city center to protest against the lay off of some 380 people in coming months, more than half the 720 total employees of the yards, in Viana do Castelo, Portugal, Wednesday June 29, 2011. Portugal's National Statistics Institute said Wednesday the deficit fell 0.7 percentage points from the previous quarter thanks to austerity measures designed to cut debt but remains high and far off target despite austerity program. (AP Photo/Paulo Duarte)

    Paulo Duarte / AP

    Henry the Navigator couldn’t steer Portugal out of this mess. The influential ratings agency Moody’s has downgraded the country’s debt once again, predicting that it will fail to meet debt-reduction targets and will need a second bailout package. Portugal already received a package worth around $113 billion this year from the EU and is trying to separate itself from Greece, which just voted to accept deep budget cuts in order to receive a bailout. The two countries have been linked as among the most troubled in the Eurozone.

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