The ratings agency Moody's has cut Portugal's long-term rating to Baa1 from A3. To add to Portugal's woes, there are reports that Portuguese banks are threatening to stop buying government debt.
All of this comes as today Portugal tries to raise about Euros 1BN on the bond market in order to service its debts (before it tries to refinance them in the summer).
Thus the pressure is mounting, on whoever is running the country, to go cap in hand to the EU to ask for a bailout. Were this to happen the conditions of the bailout will be onerous in the extreme, and not likely to be acceptable to the people of Portugal.