Press Release|Sovereigns

KBRA Affirms A-/K1 Ratings for Portuguese Republic; Outlook Stable

9 Feb 2024   |   Dublin


KBRA Europe (KBRA) affirms the long-term issuer ratings of A- for the Portuguese Republic. KBRA also affirms the short-term ratings of K1. The Outlook on the long-term ratings is Stable.

This credit rating is an unsolicited credit rating
With Rated Entity or Related Third-Party ParticipationYes
With Access to Internal DocumentsYes
With Access to ManagementYes

KBRA's affirmation of the ratings reflects Portugal’s enhanced resiliency due to structural transformation of the economy post-global financial crisis, which has reduced macro and fiscal imbalances, while also improving Portugal’s economic dynamism. Portugal’s government finances, including debt dynamics, continue to improve. Macro indicators suggest a sustainably faster pace of growth should endure over the medium-term helping to consolidate key debt ratios, although near term prospects remain challenged by the rate environment. Absorption of European Union Recovery and Resilience Facility funds also underpin Portugal’s macro prospects. In contrast to these positive trends, the upcoming election carries political and policy risk and could potentially lead to parliamentary deadlock, in KBRA’s view. KBRA continues to monitor developments in the Middle East and the Red Sea, but acknowledges the risks posed to Portugal’s rating are contained, at this juncture.

To access rating and relevant documents, click here.

Click here to view the report.



Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

Doc ID: 1003199

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