Portugal: Investors are waiting for improved ratings to buy bonds – IGCP

Page created: Friday, 14 July 2017 14:20 GMT

DBRS   Debt

Lisbon, July 14 (Lusa) – The president of IGCP, Portugal’s public debt management agency, Cristina Casalinho, said on Friday in parliament that there investors positioned to buy future bonds from Portugal, ahead of the country’s rating improving from “junk” status.

“We have noticed that some investors believe that this new possibility seems solid, some are positioning themselves based on the idea that Portugal’s [rating] will go back to an acceptable investment grade range,” said Casalinho at a hearing of the Budget, Finance and Administrative Modernisation Committee (COFMA).

In June Fitch (one of the top three world credit rating agencies) changed the outlook on Portuguese debt to positive despite keep its rating at (´BB+´), which is still considered ‘junk’ grade, but the upgraded outlook suggests it could move to investment grade in the near future.

Casalinho said she also has positive expectations about Moody’s and Standard & Poor’s, but said on Friday that IGCP does not want to make forecasts.

Currently, only Canada’s DBRS (the fourth largest rating agency) considers Portugal’s debt to be investment grade.

The DBRS rating is very important for the European Central Bank (ECB) to continue to buy public debt in Portugal and to finance Portuguese banks.