Fitch also stresses its confidence in the choices being made by the Portuguese government concerning economic and budgetary policy.
Within the context of a slowdown in overseas demand, the Portuguese economy has shown itself to be resilient while maintaining balanced growth driven by a positive internal demand dynamic with a focus on investment.
Regarding public finances, Fitch is in line with the Government’s perspectives on the budgetary balance as well as on a sustained reduction in the ratio of public debt and a strategy of prudent debt management, including the increase in average bond maturity, a diverse investment base and the maintenance of an adequate liquidity cushion.
Fitch also highlights a robust banking system where there have been significant advances in reducing non-performing loans, identifying limited risk on financial stability.
The agency also highlights the importance of the early payment of 2000 ME to the European Financial Stability Fund and the reduction of contingent responsibilities.
After DBRS’s decision in October to raise the rating of the Portuguese Republic, the main International agencies have awarded a positive outlook for Portuguese sovereign debt, thereby expecting further rating rises.