DBRS decision to maintain rating “reflective effort of families and companies”

O minister of Finance today stated that the decision of the DBRS financial rating agency to confirm Portugal’s rating in “A” (high) reflects the efforts of families and companies, in addition to the government’s work.

DBRS today confirmed Portugal’s “A” rating high, with a positive trend.

“ More than the recognition of the work of this government, this note reflects the efforts of families and companies, which put the country on a path of growth and debt reduction”, said the Minister of State and Finance, Miranda Sarmento, quoted in a statement.

The governor also stressed that this is another day of recognition for the country, seeing that the executive keeps the commitment to continue to support the Portuguese, “in mortgage their future”, ensuring the balance of public accounts.

Morningstar DBRS also confirmed Portugal’s short-term classification in “R-1” (mean).

The trend of short-term classifications remains stable.

According to the same note, the positive trend reflects Morningstar’s view that Portugal’s public debt ratio will continue to decrease, “despite a challenging external context.”.

This path is strengthened with stronger growth than expected and with a “wise fiscal plan” for next year.

On the other hand, he stressed that after three years of budgetary surpluses, Portugal must record at least a balanced budget this year, “unexpected save”, sustained by prudent management and favourable growth dynamics.

The medium-term growth prospects remain favourable, supported by a “strong labour market”, EU funds and budget support.

However, DBRS warned that increasing geopolitical and commercial tensions remains the main risk to growth and public finances.