Portugal Debt Downgraded At Fitch: How To Trade It

Fitch ratings agency just downgraded Protugal's rating from AA- to A+, and said that the outlook is negative.

Traders can look to go short Portugal Telecom (NYSE: PT) to take advantage of the downgrade.

I would expect further downgrades from the other rating agencies to come within weeks, if not days.

This could eventually lead to a downgrade of Spanish debt, which is really the big issue in Europe, as it's an extremely large economy.

Traders can go short the iShares MSCI Spain Index ETF (NYSE: EWP) to take advantage of this.