Friday, February 3, 2017

The ministry of Finance satisfied with the maintenance of ‘rating’ by Fitch – Diário de Notícias – Lisbon

The statement ends with the assurance that “the Government is determined in the stabilization of the financial sector”

The Ministry of Finance responded today with satisfaction the decision of the rating agency financial Fitch to maintain the ‘rating’ and the perspective of the Portuguese Republic stable.

“we are delighted to record the increase of trust of the agency in the reduction of the risk of macro-economic”, responded the Ministry of Mário Centeno, in a note sent to Lusa news agency.

That increase, noted the Ministry, “is no stranger to fiscal consolidation – with a global deficit safely below 2.3% of GDP – and the concern in creating the conditions of sustainability of public debt – with a primary surplus above 2% of GDP”.

on the other hand, it is still the text, “the risks for which alert the Fitch come mainly from the external component”, which led to the Government adding that “political stability (…) in Portugal and the capacity of Portuguese companies to diversify their markets, mitigate risk exogenous to the Portuguese economy”.

The statement ends with the assurance that “the Government is determined in the stabilization of the financial sector” and with the consideration that “the State Budget for 2017 shall comply with the commitments of the State with creditors and international institutions and foster economic growth and job creation, contributing to an increase of confidence in the Portuguese economy”.

Fitch maintained today the note assigned to Portugal to BB+, adding consideration of stable for the perspective, according to the press release issued in London.

“the rating of The public debt of Portugal is supported by institutions robust, a strong business environment and one of the highest per capita incomes in the category BB”, justified the agency credit ratings.

However, he added that these factors were balanced by “high levels of public and private debt, a weak performance in the growth and problems inherited in the financial system”.

Fitch also highlighted that the economy has recovered in the second half of 2016, thanks “to the increase of exports and the renewal of confidence of consumers is associated with a rise in employment”.

The agency noted that the risks internal macroeconomic decreased, but that Portugal remains vulnerable to external developments.


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