Bankinter | Moody’s maintains Portugal’s rating and outlook at A3 “Stable”. For our analysts this is good news for the Portuguese economy. “The financial rating agency considers that this rating is a reflection of a competitive and diversified economy”. Moody’s forecasts GDP growth of +1.6% in 2024 and +2.2% in 2025. However, it continues to point to challenges such as the high public debt ratio, although it acknowledges that it has been declining since the peak in 2020, and a more complex policy cycle due to parliamentary fragmentation.
On the other hand, S&P maintains its rating on Ireland at AA and raises the outlook to positive from stable. The rating was also revised by Fitch, which affirmed the rating at AA and the outlook stable. -This upward outlook revision underscores the strength of the Irish economy. The upgraded outlook is mainly due to good fiscal developments,” our experts explain. Corporate tax revenues are driving the fiscal surplus and, as a result, continue to rebuild reserves after the deficits recorded in 2020 and 2021. They also highlight their solid growth in recent years. Fitch maintains both the rating and outlook, highlighting the strength of institutions and high GDP per capita.
