Moody’s downgrade Portugal to Junk Status…

And another one bites the dust, oops, whose fault was that? As Pete noted last night, none of the ratings company’s were impressed with yesterday’s deal with Greece …

Moody’s said it is unlikely Portugal will be able to tap private markets for financing in 2013 if Greece’s second bailout, currently under negotiation, demands private investors to roll over Greek debt they hold.

“This development is significant not only because it increases the economic risks facing current investors, but also because it may discourage new private sector lending going forward and reduce the likelihood that Portugal will soon be able to regain market access on sustainable terms,” Moody’s said.

Portugal’s €78 billion (about $113 billion) bailout plan will allow it to stay away from markets for financing until the second half of 2013.

If it can’t tap investors, the country will need a second round of help, just like Greece,

Mick is founding editor of Slugger. He has written papers on the impacts of the Internet on politics and the wider media and is a regular guest and speaking events across Ireland, the UK and Europe. Twitter: @MickFealty