Upgrade of Portugal’s score to EEE- from EE+ and changed outlook to stable from positive

Paris, August 29, 2017 – Beyond Ratings has upgraded Portugal’s long-term score to EEE- from EE+ and changed outlook to stable from positive.

This upgrade reflects Beyond Ratings expectation expressed one year ago that Portugal’s recent growth trend – and above all – fiscal improvements have been important drivers of this decision. Indeed, with the lowest budget deficit since 1974 reached in 2016 (at 2.1% of GDP), we expect the country to continue to deliver tighter fiscal policy while maintaining political stability, and that narrowing deficit. Moreover, the latest growth figures (+1.6% in 2015 and +1.4% in 2016) should support sustained reduction of Portugal’s debt-to-GDP ratio in the long run.

As a reminder, Portugal endured years of painful austerity under an EU/IMF bailout programme in 2011-14 following a severe debt crisis, but the left-leaning Socialist Government, in place since late 2015, has managed to combine budgetary discipline with a reversal of some of the austerity measures.


Free Weekly Digest

Sign up for our free Weekly Digest and receive insightful analysis on risk drivers that impact countries' economies and the sovereign bonds asset class.

Sign up