Fitch Under Rating From Portugal for A+ and Highlights Government Debt Reduction
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The rating agency raised Portugal's note, invoking political commitment to budgetary discipline and a public debt on a fall-down path.
The financial rating agency Fitch improved this Friday the classification of the Portuguese debt from A to A+, maintaining a stable perspective. The decision is justified by the strengthening of public finances, the trajectory of debt decline and stronger budgetary results than those of countries with similar ratings.
The agency had improved in the first half of the year the Portuguese economic prospects from 'stables' to 'positives', already letting anticipate a possible increase of rating. Fitch thus equals S&P and DBRS in the evaluation of Portuguese titles.
The agency highlights the projected trajectory of public debt reduction and solid budget balances. The Ministry of Finance emphasizes that this increase places Portugal on par with France and Belgium.
Agency projects that the general government debt should fall to 87% of GDP in 2026 (before 89.7% in 2025) and to 82.9% in 2028
"The increase reflects the strengthening of Portugal's public finances, including a projected path of reducing public debt and considerably stronger budgetary balances than those of its peers, sustained by a strong political commitment to fiscal prudence," the agency said.
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