Portugal's downgrade to junk may stifle corporate bond sales in Europe, killing off a mini- revival in issuance spurred by investor optimism about Greece's efforts to avoid default.
“The primary window has almost slammed shut just as spectacularly as it had flung open,” said Suki Mann, senior credit strategist at Societe Generale SA in London.
Enel SpA, Italy's largest power operator, and Fiat SpA led 5.4 billion euros ($7.7 billion) of company bond sales in Europe this week, the biggest round of issuance by non-financial borrowers since May, according to data compiled by Bloomberg. Notes sold by Enel and Fiat fell in their first day of trading today, while two issuers pulled deals.
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