Sun. Mar 29th, 2020

S&P keeps Portugal in "BBB" but improves its outlook to "positive"

The Standard and Poor's (S&P) agency today maintained Portugal's credit rating at "BBB", two levels above the considered "junk bond", but improved the outlook from "stable" to "positive", which opens the door to A future rise.

S&P, which in March has already raised the debt score by one step, highlighted in a statement the good budgetary performance demonstrated by the country.

In addition, he considered that the legislative elections of October 6 – for which the ruling Socialist Party is the clear favorite in all polls – will not yield a result that alters the current budgetary policy.

After knowing the decision of S&P, the Portuguese Ministry of Finance said in a statement that the improved perspective "benefits the financing conditions of the State, families and companies."

In that regard, he recalled that Portuguese 10-year obligations today trade below 0.3% in the secondary market and the difference with those of other countries has been reduced, so they have been placed in line with those of States like Spain.

S&P, which will revise the Portuguese rating in 2020, was the first of the three major rating agencies that removed Portugal from the "junk bond" in 2017.

Like S&P, Fitch places Portuguese debt two levels above the "junk bond", while Moody's keeps it on the last step considered non-speculative.

. (tagsToTranslate) SP (t) keeps (t) Portugal (t) BBB (t) perspective

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