Off the wire
• U.S. not to grant Exxon drilling waiver to work with Russian oil company  • Lavrov, Tillerson agree to restudy possibility on probe into Syria chemical incident  • U.S. stocks close lower ahead of French election  • Interview: China's Belt and Road initiative offers new opportunities for Kiev: Ukrainian expert  • Roundup: Experts rule out genocide in South Sudan, urge end of hate speech  • Tanzanian immigration officers arrest former convict of Rwanda genocide  • U.S. dollar rises ahead of French election  • Nadal closer to 10th Monte-Carlo Masters trophy, Djokovic shocked by Goffin  • First cruise ship with Chinese group tourists sets sail from Greek port  • Masked settlers attack Israeli rights activists in West Bank  
You are here: 　 Home

Canadian ratings agency DBRS maintains Portugal's rating at investment grade

Xinhua, April 21, 2017 Adjust font size:

International ratings agency DBRS maintained Portugal's rating at investment grade on Friday.

"DBRS recognizes the progress that Portugal has made to overcome the main challenges still facing the country," Portugal's ministry of finance said in an official statement sent to media.

According to the statement, the decision "reflects legacy issues from the crisis, in particular in what concerns accumulated debt and non-performing assets, both of which are being addressed by the government."

The decision is also due to Portugal having exceeded market expectations about economic growth, fiscal consolidation and stabilization of the financial sector, the statement added.

The decision means Portugal will continue to be able to access the European Central Bank's bond-buying program.

Toronto-based DBRS is the only major rating agency that didn't cut the country's bonds from investment grade after the country was forced to sign a 78 billion euro bailout program in 2011 when it was on the verge of bankruptcy.

Fitch, Moody's and S&P have all kept Portugal under investment grade.

The Socialist government led by Prime Minister Antonio Costa, which took office with an anti-austerity stance that shocked other eurozone countries, has managed to cut its deficit to 2.4 percent of gross domestic product last year, the lowest rate seen in four decades.

However the country's debt level is still above 130 percent. DBRS noted that Portugal faced several challenges including high debt levels, modest longer-term growth prospects, fiscal pressures and highly indebted non-financial corporations. Endit