KBRA upgrades the Portuguese Republic’s (Portugal) long-term and short-term issuer ratings and revises the Outlook on the long-term ratings to Stable, following the upgrade.
Ratings Outlook
The Outlook reflects materially stronger fiscal fundamentals, including sustained primary surpluses, continued debt reduction, and improved fiscal flexibility, alongside economic growth that has outperformed the euro area. An ambitious structural reform agenda, a favourable investment environment (including a low corporate income tax), and a resilient labour market are expected to support medium-term growth. Portugal’s external accounts benefit from a diversified export base and current account surpluses. External risks from geopolitical tensions, global trade fragmentation, and an increasingly uncertain international policy environment could influence near-to-medium term performance.
Key Credit Considerations
The ratings were upgraded because of the following key credit…
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