Outlook: Stable
Action date: 01/07/2022
Rating action: Affirmed


We affirm the credit rating of the Republic of Portugal at BBB with a stable outlook. Portugal is the one of the most important economies within the European Union, with a population of 10,2 million and a GDP of 0,2 trillion euros at the end of 2020. The GDP per inhabitant stood at 19,640 euros at the end of 2020 .The rating is based on the GDP growth potential that we expect to see in 2021 and 2022 (4.7% and 5.89% respectively), leaving behind the historical contraction of 8.4% recorded in 2020, and the positive effect that the EU Next Gen will have on the growth potential in the medium term, in addition to the consolidation of the financial sector and the foreign sector. However, the rating continues to be constrained by the growing public debt and the high stock of external debt.


Date last rating: 01/07/2022
Date first rating: 01/18/2019