Global ratings agency S&P on Friday upgraded Portugal's sovereign debt, citing the country's declining level of indebtedness and expectations for "balanced" growth. The decision followed September's upgrade to Portugal's outlook as the once troubled European economy continues its recovery.
In 2014, Portugal exited an international bailout program that began at the height of the European Union debt crisis. S&P raised its rating to the lower-medium-grade "BBB," with a stable outlook, up from "BBB-." The agency said Portugal should continue to run budget surpluses, steadily reducing the ratio of debt to GDP, while posting growth of between 1.5 percent and 1.7 percent through 2021.
Last year's primary budget surplus of almost three percent of Gross Domestic Product was "one of the highest in the euro area" or among OECD members, the agency said in a statement.