Bankinter | Fitch maintains Portugal’s rating at “A” and upgrades the outlook to positive from stable, pointing to the possibility of a future upgrade if the trajectory of public debt reduction continues.
The agency explained that the change in outlook reflects its expectation that the public debt-to-GDP ratio will continue to decline significantly in the coming years, supported by a fiscal policy considered prudent and budget deficits lower than those of other countries with similar ratings.
Fitch also highlighted the relative strength of the Portuguese economy, which is expected to maintain growth of around 2% in 2026, driven mainly by private consumption and investment.
Bankinter analysis team’s view:
Following the improvement in outlook announced by another agency last Friday, Fitch’s decision reinforces the perception of financial strength and credibility of the Portuguese economy. Such moves by agencies are usually interpreted as a positive signal by the markets, confirming the favourable evolution of the country’s macroeconomic fundamentals. In addition, the outlook revision helps to strengthen Portugal’s ability to attract foreign investment, reinforcing its image of macroeconomic stability and fiscal discipline.
