Portugal’s Outlook Raised to Positive by S&P on Falling Debt

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Portugal’s Outlook Raised to Positive by S&P on Falling Debt
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Portugal’s government bond rating outlook was raised by S&P Global Ratings as the country’s economy is set to post steady growth and its debt ratios decline.

The outlook was revised to positive from stable, S&P said in a statement on Friday. It affirmed the BBB+ rating. S&P in Sept. 2022 raised the rating one level to BBB+, with a stable outlook.

Gross domestic product growth is expected to slow this year, after bouncing back following the pandemic. Portugal had the third-highest debt ratio in the euro area in 2022 and the European Commission projected in May that it will be ranked fifth in 2023, as its debt ratio drops below the levels of Spain and France.

Government debt fell to 113.9% of gross domestic product in 2022 and the government aims for a budget deficit of 0.4% of GDP in 2023, unchanged from 2022.

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