Finance Minister Fernando Medina, Saturday, welcomed the rise in the level of evaluation Portuguese sovereign debt from “BBB” to “BBB +”, with a stable outlook, rated as “excellent news” in light of rising interest rates in the euro area.
“rise of evaluation [notação] yesterday in portuguese [sexta-feira] By Standard and Poor’s it is a good measure of Portugal, it is actually excellent news for Portuguese families and companies,” Medina stated, responding to the announcement of the largest financial rating agency, S&P.
“This ensures that Portugal does its part so that interest rates rise lower than they would have achieved if we did not have the fiscal discipline that we had,” the minister added, speaking on arrival on the second day of an informal meeting. EU Finance Ministers, under the Czech Presidency of the Council, in Prague.
After the European Central Bank (ECB) decided to increase its three key interest rates by 75 basis points, the second consecutive increase this year, the official noted that the announcement now made by the S&P means that “at a time when interest rates are rising”, Portugal has managed of ensuring “lower levels than other countries or even a margin gain for higher interest rates than in other countries”.
“This is of great importance because this is a benefit that is then translated directly into companies and families, because the financing of the Portuguese economy is, in essence, linked first and foremost to what is happening in the Portuguese Republic, and through that he emphasized that this is good news for families, good news for companies and good news for the country.
For Fernando Medina, this “is also the recognition that Portugal’s budgetary debt-reduction strategy is the right one”.
Standard & Poor’s recognizes this improvement in evaluationthat is, the improvement in the credibility of our debt, is an improvement of the situation that has not occurred for more than 10 years, “being” the result not only of the strong growth of the Portuguese economy, but also the result of the path of sustainable debt reduction that we are still proceeding, faster and more intensely than Other European countries and also investment views regarding the use of community funds”, justified the responsible minister, in these statements to Portuguese journalists in Prague.
The S&P is assessed after, on August 26, DBRS upgraded Portugal’s sovereign debt rating to “A” (low), with a stable outlook.
a evaluation It is an assessment attributed by financial rating agencies, and has a significant impact on the financing of countries and companies, as it assesses credit risk.
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