S&P boosts Portugal to A-

S&P said it raised its unsolicited long-term foreign- and local-currency sovereign credit ratings on Portugal to A- from BBB+.

Portugal continuously improved its external financial balance sheet and reduced its external liquidity risks, the agency noted.

“Over the past decade, external debt has consistently declined because scarcer external funding in the wake of the 2008-2013 economic and financial crisis led to steep deleveraging and Portugal shifted to current account surpluses. This trend has continued despite a temporary deterioration during the pandemic and energy price shocks, and we expect current account surpluses, the transfer of Next Generation E.U. grants to Portugal, and continuing private sector deleveraging will further improve the country's external position over 2024-2027,” S&P said in a press release.

The agency also pointed out that Portugal’s general government debt-to-GDP ratio is already below pre-pandemic levels.

The outlook is positive.

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