The financial rating agency Moody’sdecided today to leave unchanged the classification of Portugal’s sovereign debt at A3, with a stable outlook.
“The confirmation of Portugal’s A3 classification reflects the the country’s competitive and diversified economy, as well as its relatively high standard of living“indicates Moody’s, in the decision published today.
For the agency ratinga “high institutional and governance solidity it also supports your credit profile.”
“However, the A3 classification also considers one andhigh level of debt and a robust debt repayment capacity, although both are weaker compared to other countries with similar ratings, despite fiscal and debt improvements in recent years”, points out Moody’s.
I and susceptibility to risk is “moderate and is related to geopolitical risk”.
With regards to the outlook (perspective), this remains stablewhich reflects the agency’s assessment that the risks to Portugal’s credit profile “are balanced”.
“Although political uncertainty has increased in recent years, With repeated early elections and parliamentary fragmentation making policymaking more complex, we hope that these internal political changes will not significantly alter the prospect of robust economic growth of around 2% and a further reduction in public debt throughout the analyzed period”, concludes Moody’s.
The executive intends achieve surpluses of 0.3% of GDP in 2025 and 0.1% in 2026. As for the debt ratio, estimates the reduction to 90.2% of GDP in 2025 and 87.8% in 2026.
This is the last assessment scheduled this year of the agencies rating accompanying Portugal, after the Fitch eaDBRS have moved up the ranking once and the S&P twice.
O rating is a assessment assigned by financial rating agencies, with great impact on the financing of countries and companies, since assesses credit risk.