The major ratings agencies have expressed optimism about the Portuguese economy. Moody’s was the first to raise the country qualification, and recently raised the rating to Ba1 considering the prospects of the nation as “stable”. In addition, Standard & Poor’s still has the prospect of Portugal as “stable”, as well as Fitch which that became it “positive” last April.
The decisions of these rating agencies are based on the progress the country has made in relation to reducing its budget deficit, projected growth and financing conditions, the output of the Troika and, in general, the improvement of the national economy.
For these reasons, the major investment banks in the world, such as Citigroup and Commerzbank, have recommended their clients buying Portuguese debt. David Schnautz, analyst at Commerzbank, indicated that the expectations of these decisions have created conditions for the debt interests continue to fall. So far, they have been “falling in all bonds, especially in the shorter” as data released by the Jornal de Negocios.
[photo credit: Rafael Matsunaga]
