KBRA Upgrades Portuguese Republic’s Long-Term Ratings to A+; Outlook Revised to Stable
7 Aug 2026 | Dublin
KBRA Europe (KBRA) upgrades the Portuguese Republic's long-term issuer ratings to A+. KBRA also upgrades the short-term ratings to K1+. The Outlook on the long-term ratings has been revised to Stable from Positive.
| 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 upgrade of Portugal’s ratings reflects the country’s improved sovereign credit profile, underpinned by sustained fiscal consolidation, resilient economic growth, and a marked reduction in macroeconomic imbalances. The ratings also reflect an ambitious structural reform agenda, a favourable investment environment (including a relatively low corporate income tax), and a resilient labour market, all of which are expected to support medium-term growth. The Stable Outlook reflects our expectations that Portugal will maintain solid economic momentum and continued fiscal discipline, supporting a favourable debt trajectory through sustained primary surpluses. The country's resilience is further reinforced by a resilient banking sector and a noticeable deleveraging across all sectors of the economy. While a fragmented political landscape presents some policy risk, it is not expected to materially alter the current trajectory. External risks also remain contained, with Portugal’s external accounts benefiting from a diversified export base and current account surpluses, although geopolitical tensions, increasing global trade fragmentation and heightened international policy uncertainty could weigh on economic performance over the medium term.
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