Rating relief - a potentially disastrous setback for Portugal’s economic recovery was averted with last Friday’s announcement that Canada’s DBRS agency has upheld Portugal’s only investment-grade credit rating. A much-feared downgrade to junk status in line with that of the other main agencies - Fitch, Moody’s and Standard & Poor’s - would have seen Portugal cast out the European Central bond-buying program and raised borrowing costs for the government, banks and companies.
DBRS said its latest positive rating review “reflects Portugal’s eurozone membership and favourable public debt maturity structure, and reduced vulnerabilities.”