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Fitch takes Greece out of default rating after swap deal

Fitch moved Greece from "restricted default" to B- after it completed the largest debt restructuring deal in history.

Portugal: the new Greece

Unsustainable bond yields being used to finance unpayable debts.
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Things are really rough all over the Iberian peninsula as Portugal's Prime Minister Pedro Passos Coelho (R) seems to be telling his Spanish counterpart Mariano Rajoy. (PATRICIA DE MELO MOREIRA/AFP/Getty Images)

In Portugal the numbers are all bad:

The deficit is 9.1 percent of GDP. The economy is expected to contract by anywhere between 3.1 and 5 percent this year. It took a bailout from the EU, ECB, IMF "troika" of 78 billion euros ($102.6 billion) and will have a hard time paying it back because its credit rating is now "junk." Five year bond yields yesterday broke a record: 18.9 percent. Three year bond yields hit 21 percent.

Oh, and unemployment stands at a record 13.2 percent.

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More down and up economic indicators in Europe and other stuff

Spanish debt downgraded amid hope that France and Germany have finally reached agreement on euro bailout. Plus other happenings around the continent
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Spain's Finance Minister Elena Salgado Mendez - is she praying for the ratings' agencies to understand her country's difficult debt situation? (DOMINIQUE FAGET/AFP/Getty Images)

Pulling string around the continent:

Economy

Degradation:  Spanish debt was was downgraded two notches to A1 by Moody's yesterday. This makes it a hat trick of downgrades, as Fitch and Standard & Poor's had already done the dirty to Spain. (more here for those who read Spanish)

Today's French papers are full of speculation that France's debt will be next. Moody's has put France "under surveillance." 

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