Fitch will consider a rating upgrade to Portugal after October’s general election.
Economic growth and political stability were the reasons why Fitch announced that it will consider upgrading Portugal’s rating after the general election to be held October this year. The American rating-company has once surprised the world when it upgraded for the first time the Portuguese rating to BBB on December 2017. It might probably do it again.
Alongside with external factors, the motive for not upgrading it yet was fear concerning the high-level public indebtment, that was at 121.5% of GDP in 2018, and the impact of bad credit on the financial system.
“The bigger risks for the Portuguese Economy are still associated with the slowing down of structural reforms both in the eurozone and in a national level, where much of the economic stability relies on very low-level of interest rates.”, Luís Tavares Bravo, Board Member and Senior Economist at Francisco Sá Carneiro Institute, commented.
Nevertheless, Mr. Tavares Bravo added that “this revision is always positive, in case of happening, as it will ensure in a solid way our access to the international markets.”