Fitch Upgrades Portugal's Credit Rating to A+ on Fiscal Strength
Fitch raises Portugal's sovereign rating to A+ from A, citing improved public finances and lower debt levels.
Global credit ratings agency Fitch has upgraded Portugal's sovereign rating to "A+" from "A", marking the second such improvement within a year. The decision, announced on Friday, reflects the country's strengthened public finances and a declining government debt burden.
In its statement, Fitch attributed the upgrade to "policy prudence, repeated fiscal outperformance and persistent current account surpluses," which it said have enhanced the economy's resilience and capacity to absorb shocks.
Portugal's finance ministry welcomed the move, describing it as evidence of international investor confidence in the economy. Finance Minister Joaquim Miranda Sarmento called the upgrade "another major victory for Portugal," particularly amid a global environment marked by geopolitical and economic uncertainty.
The upgrade follows data from July showing Portugal's economy expanded by 0.8% in the second quarter compared with the previous three months, supported by a positive contribution from net exports and stronger private consumption.
Fitch projects Portugal's general government debt will decline to 87% of GDP in 2026 from an estimated 89.7% in 2025, and further to 82.9% by 2028, underpinned by primary budget surpluses and moderate nominal growth. The agency maintained a "stable" outlook on the rating.
Portugal's sovereign credit is also rated as investment grade by peer agencies S&P and Moody's.