KBRA Upgrades Portuguese Republic’s Long-Term Ratings to A with Stable Outlook.
9 Aug 2024 | Dublin
KBRA Europe (KBRA) upgrades the long-term ratings of the Portuguese Republic to A. 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 Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | Yes |
KBRA’s decision to upgrade the ratings reflects Portugal’s dramatic fiscal consolidation in recent years, coupled with a strengthening economy that grows faster than the euro area average. Macroeconomic imbalances have been reduced and external vulnerabilities have receded somewhat. Improving fundamentals, together with public investment, suggest robust growth is attainable over the medium-term horizon, which will further aid government debt consolidation. KBRA acknowledges that the political environment has become more fragile, although this is unlikely to threaten the disbursement of the European Union’s Recovery and Resilience Facility. These funds also help underpin the Stable Outlook.
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