Financial rating agency Fitch upgraded Portugal’s rating this Friday from “BBB+” to “A-” and maintained a stable outlook, the agency said in a statement.
Fitch justified the decision on a “persistent” fall in the government debt-to-gross domestic product (GDP) ratio and the evolution of the fiscal balance, and highlighted the economic outlook and the “resilience” of the banking sector.
This makes the US agency the second to assign an ‘A-‘ rating to Portugal’s sovereign debt, after DBRS did so in July.
In April, Fitch kept Portugal’s sovereign debt rating unchanged after upgrading Portugal’s rating from ‘BBB’ to ‘BBB+’ in October last year with a stable outlook.
A “rating” is an assessment provided by financial rating agencies that has a major impact on the financing of countries and companies as it assesses credit risk.
Author: Lusa
Source: CM Jornal
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