Standard & Poor’s raises the rating of Portugal – Les Echos

Portugal’s efforts are beginning to bear fruit. The country has recorded an increase in gross domestic product of 0.9% last year – the first since 2010 – and the government expects growth of 1.6% in 2015. The deficit, meanwhile, is expected to rise 3% this year to 2.7% next year. In 2014, it represented 4.5% of the national wealth creation. Finally, unemployment has also declined significantly. Improved recognized by Standard & amp; Poors has revised upwards the credit quality of Portugal, reflecting “ the strong economic recovery of the country .”

The rating agency has decided on Friday to raise up a notch sovereign rating of the country. She rises from BB to BB +. Lisbon is therefore found one notch to “investment grade” category to which belong the safest states. The markets welcomed the news. The yield on Portuguese government bonds fell to 2.46% on Monday, its lowest level in a month. Before then up, like other government bonds in the wake of the rise in US Treasuries.

Limited risk

Rest, perhaps a downside. October 4 will hold elections whose outcome is uncertain, the two traditional parties are neck-and-neck. However, as noted Générale, “ contrary to what one can see in Greece or Spain, there is no clear anti-austerity party .” The risk of a change in direction is limited. “ The future government implement policies that continue to support economic growth and fiscal consolidation ,” said Standard & amp; Poors

While keeping a stable outlook, S & amp;. P could even face the Portuguese expenses if “ any significant and sustained improvement in growth prospects “and a reduction of the debt, provided that the future government does not deviate significantly from the current economic policy by stopping structural reforms.

Benoît Guillaume