Portugal CDS spreads widen 22% following downgrade to junk

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Yesterday's downgrade of Portuguese debt to Ba2 from Baa1 by Moody's Investors Service sent credit default swap (CDS) spreads on the heavily indebted sovereign skywards, from 767 basis points at close of play yesterday to 935bp at today's close – a jump of just over one-fifth – according to data provider Markit.

That was the trigger for a general widening of spreads for the other peripherals. Greece, rated Caa1, led the way, with spreads jumping from 1,916bp to 2,150bp at today's close. Irish sp

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