Fitch maintains Portugal's rating but upgrades outlook to positive
Fitch has maintained Portugal's sovereign debt rating at 'A' while upgrading the outlook from stable to positive. This decision reflects expectations of a significant decline in public debt relative to GDP, supported by prudent fiscal policies. The agency forecasts a deficit of 0.8% for this year, primarily due to storm-related expenses and increased spending from the Recovery and Resilience Plan. Fitch anticipates a budget surplus by 2025 and a gradual decrease in the deficit to 0.5% by 2027, despite potential risks from storm costs. This marks the second positive outlook adjustment for Portugal's rating in a month, following a similar move by S&P.














