S&P upgrades Portugal's credit rating

The international credit rating agency Standard and Poors (S&P) has upgraded Portugal's credit rating. According to the statement made by S&P, the country's long-term foreign and local currency ratings were raised from "BBB" to "BBB+". Its short-term credit ratings were confirmed at "A-2". The credit rating agency stated that despite higher energy costs and rising inflation, Portugal continues to achieve strong growth, labor market and fiscal results with an investment plan of €61.2 billion (26% of GDP) expected between 2022-27. S&P noted that the single-party majority in the government reduces uncertainty about the implementation of fiscal and structural reforms included in Portugal's Stability Program and the country's Recovery and Resilience Plan. The agency assessed that "We expect Portugal to post a primary surplus in 2022 and to put its debt-to-GDP ratio on a steeper path than its peers." S&P expects Portugal's economy to grow 4.8 percent this year and 2.2 percent next year, with a credit rating outlook of "stable."