Moody’s downgraded Portugal’s credit rating to Ba2 from Baa1 Tuesday afternoon, which caused the euro currency to turn south against the U.S. dollar.
The downgrade took the rating on Portuguese sovereign debt into junk territory, which may require European banks to raise more capital to account for the increased risk of holding government bonds from Portugal.
Moody’s also kept its outlook on Portugal’s credit rating at negative, indicating an increased likelihood of an additional downgrade in the future. The ratings agency stated that the Portuguese downgrade was based on the growing risk that the nation will need a second round of financing, and that it will be unable to achieve the deficit reduction and debt stabilization targets developed in agreements with the International Monetary Fund (IMF) and European Union (EU).
Following the announcement, the euro slid from 1.4460 to 1.4420 against the dollar. Gold futures showed a muted reaction, holding near their intra-day high at $1,513 per ounce.
Crocodile Gold Appoints New President and CEO
Crocodile Gold (CRK.TSX) announced the appointment of Chantal Lavoie as President and CEO of the Company, effective June 17, 2011. Mr. Lavoie is a Professional Mining Engineer with substantial experience in mining operations and projects. Mr. Lavoie has spent the previous eight years at De Beers Canada Inc. where he oversaw the Canadian operations of De Beers, including Snap Lake and Victor mines, the Gahcho Kue project and was acting CEO of De Beers. Mr. Lavoie also worked for Barrick Gold Corporation at Goldstrike in Nevada and Aur Resources Inc. at the former Louvicourt mine. Full Crocodile Gold News Release.
