The financial rating agency Fitch raised Portugal's sovereign rating from 'A' to 'A+' on Friday, with a stable outlook. This is the fourth upward revision of the Portuguese credit assessment in two years and represents the highest level since March 2011, over 15 years ago. The Ministry of Finance, led by Joaquim Miranda Sarmento, classified the decision as "another great victory for Portugal", highlighting that this achievement occurs in a global context marked by high economic and geopolitical uncertainty.
The decision is based on the consolidation of public finances and the State's deleveraging trajectory. Fitch anticipates that the public debt ratio in relation to GDP will decline to 87% by the end of 2026, more optimistic than the Government's own estimates. The agency also projects a budget surplus of 0.1% for the current year and Portuguese GDP growth of 2.1% in 2026, above the Euro Zone average, driven by investment dynamism.
With this update, Portugal now shares a credit risk level equivalent to economies such as France, Belgium, Estonia, Lithuania, Slovenia and Malta, joining the restricted group of Euro Zone countries with a high degree of confidence among international investors. Fitch refers to the firm commitment to prudence and rigor in public accounts as a differentiating factor.
The assessment comes following the analysis by Standard & Poor's, which recently maintained Portugal's rating at A+ with a positive outlook, consolidating a favorable cycle in the evaluation of Portuguese sovereign debt. The Government reaffirmed its intention to continue the strategy of balancing public accounts and sustained reduction of indebtedness, combining fiscal consolidation with structural reforms to increase the competitiveness and productivity of the national economy.
