Nov. 24 (Bloomberg) -- Citigroup Inc. will keep Portugal’s bonds in its indexes even after Fitch Ratings cut the nation’s credit score to non-investment grade, so-called junk.
The company’s European Government Bonds and World Government Bonds indexes use rankings from Standard & Poor’s and Moody’s Investors Service, not Fitch, Nishay Patel, a fixed- income strategist at Citigroup in London, said by e-mail.
“A one-notch downgrade from S&P will take Portugal out of the index,” Patel said.
Portugal’s bonds fell, pushing the 10-year yield up 29 basis points to 11.60 percent at 11:57 a.m. London time after Fitch lowered the nation’s creditworthiness one step to BB+, the highest junk status, with a negative outlook. Moody’s rates Portugal Ba2, which is junk, while S&P ranks the nation BBB-, one notch above non-investment grade.
--Editors: Mark McCord, Nicholas Reynolds
To contact the reporter on this story: Emma Charlton in London at firstname.lastname@example.org.
To contact the editor responsible for this story: Daniel Tilles at email@example.com.