Jan. 24 (Bloomberg) -- Portugal Telecom SGPS SA, the country’s biggest telecommunications company, fell for a second day in Lisbon trading to the lowest since 2002 after its debt rating was cut to junk status by Standard & Poor’s last week.
“The S&P downgrade is weighing on PT shares,” said Juan Dieste, a trader at Orey iTrade in Lisbon. “A weak economy in Portugal and the fact that the company is still trying to jump- start its operations in Brazil doesn’t help.”
Portugal Telecom dropped as much as 8.6 cents, or 2.1 percent, to 4.06 euros, the lowest since October 2002. The shares traded 0.9 percent lower at 4.11 euros as of 9:55 a.m.
S&P downgraded Portugal Telecom’s credit rating to BB+ from BBB- on Jan. 20. “Portugal Telecom is exposed to sovereign- related risks and highly exposed to domestic country risks despite some diversity benefits from its stake in Brazilian player Oi,” the credit rating company said.
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