LISBON, April 10 (Reuters) - Portuguese banks need an extra 8 billion euros
($10.45 billion)in capital, based on conservative stress tests of their health,
Moody's Investors Service said on Wednesday.
Pepa Mori, the rating agency's lead analyst for Portuguese banks, said non-
performing loans had risen more than expected because of the country's
recession.
Kathrin Muehlbronner with Moody's sovereign risk group said last week's
rejection by the constitutional court of some government austerity measures was
a setback for the fiscal adjustment process in Portugal, but it was premature
to judge on its full implications.
"Having had this decision just now, it is probably a bit too early to make
definite statements on whether in September Portugal can regain market access,"
she told Reuters. Portugal is under a 78-billion euro EU/IMF bailout.
($1 = 0.7658 euros)
(Reporting By Alan Wheatley and Sergio Goncalves, editing by Andrei Khalip)