Arab Today, arab today fitch switches portugal outlook from \negative\ to \positive\
Last Updated : GMT 09:52:06
Arab Today, arab today
Arab Today, arab today

Fitch switches Portugal outlook from \'negative\' to \'positive\'

Arab Today, arab today

Arab Today, arab today Fitch switches Portugal outlook from \'negative\' to \'positive\'

Lisbon - AFP

Fitch on Friday switched the outlook on Portugal's BB+ rating from "negative" to "positive", a month before the eurozone nation exits its international bailout, raising the prospect it may soon rejoin investment-grade ranks. Fitch said the upgrade to the ratings outlook is justified by Lisbon's progress in repairing public finances as well as the overall recovery of the economy three years after its EU-IMF bailout. "Portugal is making good progress in reducing its budget deficit," the ratings agency said in a statement. The economy took a big step towards emerging from its debt bailout and regaining investor confidence late last month by beating its budget target by a wide margin. Portugal, still struggling to overcome its debt crisis, to pull away from recession and overcome public anger at tough austerity measures, turned in a budget overshoot equivalent to 4.9 percent of output last year. That marked a huge reduction from a public deficit of 6.4 percent in 2012. But despite this marked progress in reducing the annual deficit, the gap between spending and revenues, the public debt of accumulated past deficits rose to 129.0 percent of output last year from 124.1 percent in 2012. The debt now amounts to 213.63 billion euros ($297 billion), the statistics office INE said. Fitch forecast the Portuguese economy to grow by 1.3 percent this year and 1.5 percent in 2015. In the second half of last year, the economy pulled out of recession to show growth of 1.1 percent and this also helped public finances, since growth raises tax income and reduces some costs. The recovery, ending two and a half years of recession, held in the fourth quarter when the economy grew by 0.6 percent on a quarterly basis. However unemployment is still at 15.3 percent. Portugal is scheduled to exit next month its three-year 78-billion-euro EU-IMF bailout, under which it has been required to enact deep structural reforms to correct public finances and raise efficiency in the economy. The country has returned to borrowing on the long-term debt markets and also benefitted from the general reduction in rates peripheral eurozone countries are paying to raise money. - Precautionary credit line beneficial - Lisbon has yet to decide whether or not to apply for a precautionary credit line from the EU's ESM rescue fund. In addition to the standby funds, the credit line would also open up the possibility for the ECB to step in to support Portugal in the bond markets. "Despite the improved financing conditions, Fitch believes that securing a precautionary credit line would be beneficial in protecting against downside risks, although that is not the agency's expectation and not a key rating driver," said Fitch in a statement. Fitch is the first of the three major ratings agency to raise the outlook on Portugal's rating. Moody's has had Portugal at steady since November while Standard & Poor's still has the country at negative. An upgrade from the speculative or "junk" rating of BB+ would put Portuguese bonds back into investment-grade. Berenberg Bank economist Christian Schulz noted that ratings agencies have been slower than the bond market to appreciate the improvement in the fortunes of peripheral eurozone countries that had been at the centre of the debt crisis. "The slow response of the ratings agencies could still make Portugal’s bailout exit in May more difficult," said Schulz. The sub-investment grade rating is a key reason Portugal still pays more to borrow than Italy and Spain, and complicates ECB support measures, he added.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fitch switches portugal outlook from \negative\ to \positive\ Arab Today, arab today fitch switches portugal outlook from \negative\ to \positive\

 



Arab Today, arab today
Arab Today, arab today Nasima Gamei revives Algerian heritage in jewelries

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives Algerian heritage in jewelries
Arab Today, arab today Saudis await visitors but will they come?

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Mental conflict endures

GMT 07:36 2017 Friday ,24 February

Mental conflict endures
Arab Today, arab today Media host Mona Iraqi stresses her show's success

GMT 15:32 2017 Wednesday ,22 February

Media host Mona Iraqi stresses her show's success
View News in Arabic - Business: قضايا ساخنة
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today To hold social dialogue over secondary school

GMT 07:43 2017 Wednesday ,22 February

To hold social dialogue over secondary school
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Wafaa Amer is happy for Sherihan’s return

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return
Arab Today, arab today Milan laughs while Rome cries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 05:19 2017 Tuesday ,21 February

Salma Rashid happy for 'A Whisper of Love'

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories

GMT 15:53 2017 Tuesday ,21 February

Small ponds have outsized impact

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 07:51 2017 Wednesday ,22 February

Mom's immune system accepts babies

GMT 17:46 2017 Saturday ,18 February

Tourist guide reveals methods of tourist attractions

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:22 2017 Monday ,20 February

Kanye West puts hijab-wearing model
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday