Moody's downgraded Portuguese debt rating for a second time in less than a month day, by one notch from A3 to Baa1. The rating agency also placed the country on review for another downgrade. Yield on portugal's 10 year bond jumps after the news to above 8.75%. CDS also rose above 590 basis points and is above Ireland's level for the first time since August 2010. Portugal's situation has deteriorated after the government failed to seek approval of the budget. Prime Minister Jose Socrates resigned and election for the new government will take place on June 5. Moody's expects the elected government will tap the European Financial Stability Facility (EFSF) with 'urgency'.
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