Global ratings agency S&P on Friday upgraded its outlook for Portugal's sovereign debt rating to "positive," pointing to improving growth, fiscal health and falling debt levels.
The agency left in place its lower-medium grade "BBB-" rating but said there was a chance this could be upgraded if financial stability and public and private debt levels continued to improve.
"We could raise our ratings on Portugal if the economy continues to de-leverage externally at its current pace of 3 percent - 5 percent of GDP per year, a process that would reduce the country's still high stock of net external debt," S&P Global said in a statement.