S&P raises Portugal's rating to investment grade

Source: Xinhua| 2017-09-16 05:29:26|Editor: huaxia
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LISBON, Sept. 15 (Xinhua) -- The Standard & Poor's ratings agency upgraded Portugal's rating to BB+ on Friday, putting the country's sovereign debt back in the investment grade bracket.

Citing a "strong economic and budgetary performance", the U.S.-based agency surprised the market by moving Portugal's rating up a notch, while maintaining a stable outlook.

The improved status will enable Portugal to tap sovereign wealth funds and pension funds, and mean cheaper borrowing costs in general.

Observers had expected an unchanged rating with a tweak to a positive outlook, echoing moves by the other two major agencies, Moody's and Fitch. Moody's upgraded Portugal's outlook from stable to positive on Sept. 1, maintaining a Ba1 rating, one rung below investment grade. Fitch did likewise on June 16, keeping a BB+ rating.

The S&P upgrade means Portugal is rated as investment grade status by one of the three major agencies for the first time since 2011. Of the Big Three agencies, Fitch is still scheduled to report again this year, on Dec. 15. Enditem

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