This rise is justified by "the significant improvement in Portugal's budgetary results and debt" which, in the face of a "demanding external environment", reveals "greater resilience" and a "reduction in credit risk", reads the note published by DBRS.

After a deficit of 0.4% of Gross Domestic Product (GDP) in 2022, the Canadian agency anticipates a balanced budget balance or “even a surplus this year” and values the Bank of Portugal forecast for public debt in 2025, which expects a ratio of 92.5% of GDP.

However, the DBRS points out two “vulnerabilities”, namely “the still comparatively high, although rapidly improving, level of public debt and the relatively low potential for economic growth“. In addition, inflation and high interest rates can “harm the prospects for economic growth, especially taking into account the vast majority of mortgage loans at a variable rate”.

For the future, the Canadian agency is once again focusing almost exclusively on the evolution of public accounts: “New upward revisions of the country's rating may happen if the Government manages to reduce public debt more than expected”.

In August 2022, DBRS had upgraded the Portuguese debt rating from 'BBB' to 'A' (low) for the first time in 11 years and changed the trend from "positive" to "stable", a decision it maintained at the end of January of this year. The rating is an evaluation attributed by the financial rating agencies, with a great impact on the financing of countries and companies, since it assesses the credit risk.