Portugal's credit rating was downgraded two notches by Moody's on Wednesday, owing to weak growth prospects and uncertainty over the speed with which Portugal's reforms will filter into the economy.

The rating agency downgraded Portugal's long-term government bond ratings from A1 to A3 and assigned it a negative outlook. It said "subdued growth prospects and productivity gains" over the near to medium term were behind the decision as structural reforms, especially in the labour market and the