More Moody's Debt Downgrades

LONDON—The Portuguese government suffered yet another blow Tuesday as Moody's Investors Service Inc. cut the nation's sovereign-debt rating two notches to A1, citing the government's weakening financial strength and meager economic-growth prospects.
The agency said the continued deterioration in Portugal's debt situation suggests the government's finances will continue to weaken in the medium term.
"The Portuguese government's debt-to-[gross domestic product] and debt-to-revenues ratios have risen rapidly over the past two years," said Anthony Thomas, vice president-senior analyst at Moody's Sovereign Risk Group.