Fitch Lifts Portugal Rating on 'Considerably Stronger' Fiscal Balances, Falling Debt Expectations

12:39 AM EDT, 09/07/2026 (MT Newswires) -- Fitch upgraded Portugal's long-term issuer default rating to A+ from A, with a stable outlook, according to a Sept. 4 release. The rating upgrade stems from the country's improved public balance sheet, driven by the rating agency's expectations of continued government debt reduction alongside a fiscal balance seen as "considerably stronger" than its peer group. Fitch expects Portugal's government debt to decline to 87% of gross domestic product in 2026 from 89.7% in 2025, followed by a further decrease to 82.9% in 2028, on the back of sustained primary surpluses and "moderate" nominal growth. The rating agency noted that the country's debt is still much higher than its A peers, which stand at 59.5% of GDP. However, holding mostly euro-denominated debt keeps refinancing risks contained. Fitch added that the policy prudence, ongoing fiscal beat and continued current account surpluses ensure "economic resilience and shock absorption capacity."