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..LISBON/NEW YORK (Reuters) - Moody's on Tuesday cut Portugal's credit standing to junk in the first such move by a ratings agency and warned the country may well need a second round of rescue funds before it can return to beats by dre lamboghincapital markets. Moody's Investors Service slashed Portugal's credit rating by four levels, to Ba2, causing the debt-laden Iberian country to follow Greece into junk territory below investment grade. Greece is rated much lower, at Caa1. Portugal in April became the third euro zone country to request a bailout, after Greece and Ireland. Moody's cited heightened concerns that Portugal will not be able to fully achieve the deficit reduction and debt stabilization targetsmonster beats soloset out in its loan agreement with the European Union and International Monetary Fund. Portugal is receiving funds from a three-year, 78-billion-euro ($112 billion) EU/IMF bailout program and does not need to issue long-term debt in the market until 2013. But Moody's said there is an increasing probability Portugal will not be able to borrow at sustainable rates in capital markets in the second half of 2013 and for some time thereafter. There was a "growing risk that Portugal will require a second round of official financing before it can return to the private market, Moody's said, and the increasing possibility that private sector creditor participation will be required as a pre-condition." It also said Portugal faced formidable challenges in reducing spending, increasing tax compliance, achieving economic growth and supporting the banking system. Of the three major ratings agencies, Standard & Poor's and Fitch Ratings both have Portugal at BBB-minus, the bottom of the investment grade range. Portugal's new center-right government said in a statement that Moody's did not take into account strong political backing for austerity after a June 5 election, and an extraordinary tax announced last week. Unlike the previous minority Socialist government, the new ruling coalition has a comfortable majority in parliament to pass austerity measures and reforms. It did acknowledge, though, that the rating cut "shows the vulnerability of the country's economy amid a debt crisis." It also reaffirmed commitment to deepening and speeding up austerity measures that the country vowed to implement under its bailout pact, saying a strong macroeconomic adjustment was "the only way to reverse the course and restore confidence." The country has to slash its budget deficit to 5.9 percent of gross domestic product this year after overshooting its target last year, when the gap was 9.2 percent, and then reduce it to 3 percent by the end of 2013. Anthony Thomas, Moody's analyst for Portugal, told Reuters "evidence that Portugal is meeting or indeed exceeding its deficit reduction targets" could be a positive that may lead the agency to change its outlook on the beats by dre solocountry's credit rating to stable from negative. But he also said the outlook depends a great deal on whether euro zone officials will require private sector participation when extending new financing to the region's troubled countries. Right now, such participation is planned to be only voluntary so as not to cause ratings agencies declaring it a "credit event." Filipe Garcia, head of Informacao de Mercados Financeiros consultants in Porto, said Moody's move was "a bit extreme" and was likely to exacerbate concerns over Portugal's debt. "The capacity to return to the markets after a while depends on a more global, structural solution by Europe rather than on what each troubled country does. I think it's too early to think of a second bailout for Portugal right now, not this year at least," he said. Garcia said the ratings agencies were not taking into account the European Union's political determination to avoid a euro zone member's default, despite the union's strong support for Greece, which is in a far worse shape than Portugal. "Either they don't believe in the power of the political will by the European Union to avoid default, or they are underestimating this political union," he said. Robert Tipp, chief investment strategist at Prudential Fixed Income in New Jersey, said the downgrade showed the European debt crisis was unlikely to stop at Greece, which looks set to receive a second bailout. "Once Greece gets wrapped up, you move on to the next country, and in all likelihood that will be the shape of things to come over the next year or two in the euro zone until the long-term financing trajectory for these countries gets stabilized," he said. In practical terms, Portugal may have to pay a higher premium to place up to 1 billion euros in 3-month Treasury bills in an auction on Wednesday due to the downgrade. "It'll probably make the yield a bit worse, but I don't expect anything major, because when you go to the market now you have to have the issue booked in advance," Garcia said. Portugal has opted to stay in the T-bill market after the bailout. (Additional reporting by Daniel Bases in beats solo purpleNew York and Sergio Goncalves in Lisbon; Editing by Dan Grebler) ..ORLANDO, Fla. (AP) — Casey Anthony was found not guilty Tuesday of killing her 2-year-old daughter three years ago in a case that captivated the nation as it played out on national television from the moment the toddler was reported missing. Anthony wept after the clerk read the verdict, which jurors reached after less than 11 hours of deliberation over two days. The 25-year-old was charged with first-degree murder, which could have brought the death penalty if she had been convicted. Instead, she was convicted of only four counts of lying to investigators looking into the June 2008 disappearance of her daughter Caylee. Her body was found in the woods six months later and a medical examiner was never able to determine how she died. Anthony will be sentenced by the judge on Thursday and could receive up to a year in jail for each lying count. Since she has been in jail since August 2008, she could walk free then. After the verdict was read, Casey Anthony hugged her attorney Jose Baez and later mouthed the words "thank you" to him. Prosecutors sat solemnly in their seats, looking stunned. Prosecutor Jeff Ashton shook his head slightly from side to side in apparent disbelief. Across the room, Anthony's father wiped tears from his eyes. Without speaking to Casey, he and his wife left the courtroom escorted by police as the judge thanked the jury. "While we're happy for Casey, there are no winners in this case," Baez said at a news conference afterward. "Caylee has passed on far, far too soon. And what my driving force has been for the last three years has been always to make sure that there has been justice for Caylee and Casey, because Casey did not murder Caylee. It's that simple." He added: "This case has brought on new challenges of all of us. Challenges in the criminal justice system, challenges in the media, and I think we should all take this as an opportunity to learn and to realize that you cannot convict someone until they've had their day in court." State Attorney Lamar Lawson thanked the prosecutors from his office who tried the case, and he said the case was never about the defendant. "It has always been about seeking justice for michael jackson limitedCaylee and speaking on her behalf," he told reporters. Jurors told the court that they didn't want to talk to the media at the courthouse. Anthony's attorneys claimed that the toddler drowned accidentally in the family swimming pool, and that her seemingly carefree mother in fact was hiding emotional distress caused by sexual abuse from her father. Prosecutors contended that Caylee was suffocated with duct tape by a mother who loved to party, tattooed herself with the Italian words for "beautiful life" in the month her daughter was missing and crafted elaborate lies to mislead everyone from investigators to her own parents. Captivated observers camped outside the courthouse to jockey for coveted seats in the courtroom gallery, which occasionally led to fights among those desperate to watch the drama unfold. Prior to the verdict on Tuesday, the judge said: "To those in the gallery please do not express any signs of approval or disapproval upon the reading of the verdict." Anthony did not take the stand during the trial, which started in mid-May. Because the case got so much media attention in Orlando, jurors were brought in from the Tampa Bay area and sequestered for the entire trial. Baez conceded that his client had told elaborate lies and invented imaginary friends and even a fake father for Caylee, but he said that doesn't mean she killed her daughter. "They throw enough against the wall and see what sticks," Baez said of prosecutors during closing arugments. "That is what they're doing ... right down to the cause of death." He tried to convince jurors that the toddler accidentally drowned in the family swimming pool and that when Anthony panicked, her father, a former police officer, decided to make the death look like a murder by putting duct tape on the girl's mouth and dumping the body in woods about a quarter-mile away. Her father firmly denied both the cover-up and abuse claims. The prosecution called those claims "absurd," saying that no one makes an accident look like a murder. Lead prosecutor Linda Drane Burdick concluded the state's case by showing the jury two side-by-side images. One showed Casey Anthony smiling and partying in a nightclub during the month Caylee was missing. The other was the tattoo she got a day before her family and law enforcement first learned of the child's disappearance. "At the end of this case, all you have to ask yourself is whose life was better without Caylee?" Burdick asked. "This is your answer." Prosecutors hammered on the lies Anthony, then 22, told from June 16, 2008, when her daughter was last seen, and a month later when sheriff's investigators were notified. Those include the single mother telling her parents she couldn't produce Caylee because the girl was with a nanny named Zanny — a woman who doesn't exist; that she and her daughter were spending time in Jacksonville, Fla., with a rich boyfriend who doesn't exist; and that Zanny had been hospitalized after an out-of-town traffic crash and that they were spending time with her. Among the trial spectators was 51-year-old Robin Wilkie, who said she has spent $3,000 on hotels and food since arriving June 10th from beats solo michael jackson limitedLake Minnetonka, Minn. She tallied more than 100 hours standing in line to wait for tickets and got into the courtroom 15 times. She said she's fascinated with the case because she is a victim of violent crime. "True crime has become a unique genre of entertainment," Wilkie said. "Her (Casey's) stories are so extreme and fantastic it's hard to believe they're true but that's what engrosses people. This case has sex, lies and video tapes — just like on reality TV."