Fitch Ratings on Friday affirmed Portugal's long-term foreign currency rating at 'BB+' but lowered its rating outlook to stable from positive. The ratings agency cited a wider-than-expected fiscal deficit of 4.2% of the gross domestic product versus 2.7% initially estimated for the weaker outlook. Fitch noted that the Portuguese government's plans to reduce the fiscal deficit is at risk and that it may have to implement further austerity measures which could raise political tension going forward. "Renewed political uncertainty would increase fiscal and macroeconomic downside risks," said Fitch in a statement.
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