Fitch improved Portugal's debt rating from 'A' to 'A+', an upgrade that was already anticipated by analysts after the agency had improved the outlook from 'stable' to 'positive' in the March assessment. The outlook has now changed from positive to stable.
The agency justified the upgrade with the strengthening of Portugal's public finances, including a projected trajectory of public debt reduction and considerably stronger budgetary balances than those of its peers, sustained by a strong political commitment to fiscal prudence.
With this upgrade, Fitch matches the rating assigned by S&P, representing the fifth highest grade on the scale of both agencies. Moody's maintains an 'A3' for Portuguese debt, the seventh highest value in its ratings system.
The last rating upgrade by Fitch occurred a year ago, when the rating went from 'A-' to 'A', driven by the sustained reduction of the debt ratio and the growth of the national economy. By the end of the year, evaluations are still expected from DBRS on November 13 and from Moody's on the 20th of the same month.
