Fitch upgrades Portugal's debt rating to A+

Fitch has upgraded Portugal's sovereign debt rating from 'A' to 'A+' with a stable outlook. The agency cited the strengthening of Portuguese public finances, a projected reduction in public debt, and budget surpluses that are considerably stronger than those of its peers, supported by a political commitment to fiscal prudence.

Fitch also revised its GDP growth forecasts upward, projecting an economic expansion of 2.1% this year and 1.9% in 2027 and 2028. This growth is expected to be driven by consumption and investment. The agency noted that while net trade may act as a slight drag due to high imports, the impact of earlier storms on overall growth will be limited as reconstruction efforts compensate for losses.

With this upgrade, Portugal's debt rating matches the 'A+' rating assigned by S&P. Moody's currently maintains an 'A3' rating for the country.