Portugal credit rating upgraded to A+ by Fitch

Fitch Ratings has upgraded Portugal’s long-term foreign currency sovereign credit rating from ‘A’ to ‘A+’, maintaining a ‘stable’ outlook. This marks the fourth improvement in the country’s rating over the last two years, placing Portugal at the same level as France and Belgium.

The agency attributed the upgrade to the strengthening of Portugal’s public finances, characterized by a projected downward trajectory of public debt and more robust fiscal balances compared to its peers. Fitch noted that the country’s economic resilience is supported by a strong political commitment to fiscal prudence, superior governance indicators, and institutional strengths derived from membership in the European Union and the Eurozone.

While the upgrade is a significant milestone, Fitch highlighted that high levels of accumulated public and external debt remain a factor. Projections suggest public debt could fall to 87% of GDP in 2026 and 82.9% by 2028. Portuguese President António José Seguro described the decision as ‘excellent news’ and a major recognition of the country’s long-term economic performance, noting it could help mitigate the impact of high interest rates for families and businesses.