DBRS upgrades Portugal

DBRS said it upgraded the Republic of Portugal’s long-term foreign- and local-currency issuer ratings to A from A (low).

“The upgrade reflects DBRS Morningstar’s view that Portugal’s material improvement in fiscal and debt outcomes in the face of challenging external developments points to enhanced resiliency and reduced credit risk. Public finances have benefitted from healthy economic growth, a steady increase in tax revenues, and the unwinding of crisis-related spending.

“The fiscal deficit consolidated to 0.4% of GDP in 2022 and could reach a balanced or surplus position as early as this year. The combination of steady economic growth and strong primary surpluses have resulted in a sharp decline in the public debt ratio, which the Banco do Portugal (BdP) expects will reach 92.5% by 2025,” DBRS said in a press release.

The trend is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.