(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 presser in the European Parliament in Strasbourg.
"European Union
...the successor to the Holy Roman Empire, only without the Hapsburgs and the nifty uniforms and the dancing...
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.