Latest News

S&P upgrades Portugal to ‘BBB+’ from ‘BBB’, despite external shocks


S&P upgrades Portugal to ‘BBB+’ from ‘BBB’, despite external shocks By Reuters

Breaking News


Economy 7 minutes ago (Sep 10, 2022 14:10)

© Reuters. FILE PHOTO: A person walks near Cais do Sodre during the national lockdown, amid the coronavirus disease (COVID-19) pandemic, in Lisbon, Portugal, January 23, 2021. REUTERS/Pedro Nunes

By Sergio Goncalves

LISBON (Reuters) – Ratings agency Standard & Poor’s (S&P) upgraded Portugal’s long-term issuer rating to ‘BBB+’ from ‘BBB’, seeing further improvement in the country’s public finances, and good economic prospects despite external headwinds.

After a sharp economic contraction of 8.4% in 2020, Portugal’s recovery has been strong; gross domestic product (GDP) grew 4.9% last year and the European Union Commission sees it growing 6.5% this year.

“Despite higher energy costs and rising interest rates, Portugal has continued to post strong growth,” S&P said in a statement late on Friday.

“The upgrade reflects the resilience of Portugal’s economy, public finances, and largely foreign-owned financial sector to various external shocks.”

S&P said the rating outlook was stable.

It added investment was set to rise on the back of an expected 61.2 billion euros, or 26% of GDP, in EU funding between 2022 and 2027, which would “provide a strong boost to the economy, regardless of external conditions.”

The government expects Portugal’s debt-to-GDP ratio, which finished last year at 127.4% — slightly below 2020’s record highs of 135.2% — to end this year at 120.8%.

Portugal envisages deficit reduction of 1.9% of gross domestic product this year, compared with 2.8% in 2021.

S&P said that “strong tax collection during 2022, boosted by higher growth and inflation and the government’s caution on expenditure”, would bring the deficit below target in 2022 and into balance by 2025.

Portugal’s Finance Minister Fernando Medina welcomed the move, saying it would translate into lower borrowing costs not just for the government but also for companies and families.

S&P upgrades Portugal to ‘BBB+’ from ‘BBB’, despite external shocks

EU eyes individual debt reduction paths for EU countriesBy Reuters – Sep 10, 2022

By Jan Strupczewski and Jason Hovet PRAGUE (Reuters) – The European Commission will present in the second half of October proposed changes to European Union fiscal rules that are…

Factbox-Polls ahead of Sweden’s election for parliamentBy Reuters – Sep 10, 2022

STOCKHOLM (Reuters) – Sweden goes to the polls on Sept. 11 to elect a new parliament in what is expected to be a close-fought race between the ruling left-wing bloc and the…

Greek PM Mitsotakis to promise more cost-of-living support – sourceBy Reuters – Sep 10, 2022

ATHENS (Reuters) – Greek Prime Minister Kyriakos Mitsotakis is expected on Saturday to announce further funding to cushion the impact of an energy crisis and soaring inflation on…

Our Apps

Terms And Conditions
Privacy Policy
Risk Warning

© 2007-2022 Fusion Media Limited. All Rights Reserved.

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

EU eyes individual debt reduction paths for EU countries

Previous article

ECB governors see rising risk of rate hitting 2% to curb inflation – sources

Next article

You may also like


Leave a reply

Your email address will not be published.

More in Latest News