“The sustained reduction in debt, the prudent budgetary policy and the improvement in the external situation are the basis for the revision of the outlook”, said the organisation, with “the still high public debt and the limited growth potential being constraints”, it indicated.

Thus, Scope “has maintained the long-term ratings of the issuer and the senior unsecured debt of the Portuguese Republic in local and foreign currency at A-, and revised the outlooks to positive, from stable”.

Scope also maintained the issuer's short-term ratings at S-1 in local and foreign currency, with stable outlooks, it added.

“The revision of Portugal's long-term credit ratings to positive reflects the country's sustained debt reduction, a strong track record of prudent fiscal policy with budget surpluses expected for 2024 and 2025, a robust sovereign debt profile and comparatively solid medium-term growth prospects, together with continued improvements in the external position,” Scope explained.