Fitch says likely to downgrade Portugal if no bailout

Wed Mar 30, 2011 1:08pm BST

ATHENS (Reuters) - Fitch is likely to cut Portugal's credit rating soon if it does not ask for an EU/IMF bailout, while the EU's new bailout fund puts increased pressure on Greece's junk rating, the firm said on Wednesday.

In a report assessing the rating implication of last week's EU summit, Fitch also said that the main short-term risks to Ireland's sovereign rating remained the recession and possible additional bank support costs.

(Reporting by Ingrid Melander)