The financial rating agency S&P evaluates Portugal’s rating this Friday, 27th, and should maintain the rating, after two consecutive improvements, according to analysts interviewed by Lusa.
On August 29, S&P upgraded Portugal’s rating to ‘A+’, with the outlook moving from positive to stable. “Since then, macroeconomic data has maintained a trajectory consistent with this level of classification, but without sufficiently disruptive changes that would immediately impose a new immediate review,” noted João Cruz, market analyst at Xtb, to Lusa.
The analyst also recalled that S&P has already made “consecutive improvements in a relatively short period (‘A-‘ -> ‘A’ -> ‘A+’), and agencies tend to evaluate the persistence of metrics before moving forward with new ‘upgrades’ (improvements)”.
“Although the debt trajectory continues downward and the budgetary framework remains disciplined, growth is moderate and the external context maintains some degree of uncertainty, which may justify a stance of continuity in this review”, he concluded.
Filipe Silva, investment director at Banco Carregosa, also indicated to Lusa that after two consecutive increases in 2025, it is “more likely that the rating will be maintained at A+, as S&P will tend to prioritize confirmation of the sustainability of the progress already observed, particularly on the budgetary front, in the public debt trajectory and in economic resilience”.
Regarding the outlook, “the maintenance of a stable outlook appears as the most consistent scenario, reflecting macroeconomic continuity and the absence of emerging imbalances”, highlighted João Cruz.
Filipe Silva agreed that the outlook must continue, and S&P “must closely monitor budget execution, the government’s ability to preserve political stability and the pace of structural reforms, while also assessing the impact of global geopolitical factors and possible tariffs on economic growth.”
“Portugal has demonstrated economic resilience, continuous external deleveraging and a downward trajectory in public debt, factors that support this assessment”, considered the analyst.
The ‘rating’ is an assessment given by financial rating agencies, with a great impact on the financing of countries and companies, as it assesses credit risk.
This is the second assessment of Portuguese sovereign debt this year, after DBRS, in January, maintained Portugal’s rating with a stable outlook.
Next week it will be Fitch’s turn to analyze Portugal, whose last assessment was in September 2025, when it raised Portugal’s rating to ‘A’ with a stable outlook.
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