Portugal: FinMin expects “positive” news from rating agencies

Page created: Monday, 19 June 2017 9:41 GMT

European Commission  Portuguese Finance Minister  Rating agencies

Luxembourg, June 16 (Lusa) – The Portuguese Finance Minister said on Friday he expected “positive” news on Portugal’s rating by debt rating agency Fitch on Friday after Ecofin confirmed the country’s exit from the Excessive Deficit Procedure (EDP).


“Today Fitch will reevaluate these circumstances, and we all hope that this reality can be reflected in a proper re-evaluation by the agency, but we have to wait. We can not, of course, hide the fact that there is a positive expectation that is shared by everyone,” Mário Centeno said at the end of the meeting of EU finance ministers in Luxembourg.


Centeno recalled that last month, when the European Commission recommended the closure of the EDP for Portugal, the Government said this decision was ” an upgrade, a positive rating for the country.”


“And the expectation we have is that this whole movement – which is based on a consolidation of public finances with economic growth and very strong growth in employment and falling unemployment – will bring good news also in another area that we all expect, which is an improved valuation of the rating on Portuguese debt and, consequently, the abilityfor everyone in Portugal to improve their financing conditions,” he said.


The minister also noted that “in recent weeks there has been a very significant and sustained drop in Portuguese debt interest rates,” ​​bringing Portugal “very close” to other euro area countries.


“The process of revaluation of the rating agencies is slow, it will obviously take place over the next few months, and we will have a Fitch event today, lets wait for the result,” he said.


Fitch, along with Moody’s and Standad and Poor’s (S&P), still rates Portugal’s debt as ‘junk’, which increases the costs of sovereign financing and financing for Portuguese companies.