Fitch maintains classification from Portugal. The political crisis weighs the decision – obligations
Fitch classifications decided to maintain Portugal classification in A-with a positive perspective, The Coded Agency said in a statement on Friday, When analysts expected a review of the rise, despite the recent political crisis.
In the last Portuguese evaluation, in September last year, Fitch also maintained the classification in A- But it raised the “future view” (the perspective of the development of debt quality) from stable to positive, indicating that it could improve the sovereign blogging.
The analysis of Portugal is the first since it entered the country in the political crisis and comes after only one day Solving the Republic Association and holding early elections until May 18and After the fall of the Democratic Alliance Government (AD) led by Louis Montenegro due to the leadership of the confidence movement.
The company indicates that these are the third legislative bodies three years ago, stressing “repeated political fluctuations.” The agency predicts that it is one of the main parties in the center – PS or PSD – to win the elections and that the next government maintains “wise budget policies”.
However, Fitch confirms, “Although a strong history of the country” budget discipline “during the various changes of the government, confirms, “The next electoral period may affect the implementation of budget measures, which may undermine Portugal’s budget position,” the agency says.
Fitch represents the appearance of external and internal risks, as “instability associated with elections can prevent the implementation of PR, and growth is punished by postponing critical projects. In addition, you will be able to weaken consumer and business confidence by leading families and companies to adopt more cautious strategies for expenses and investment strategies. “
Indeed abroad, “challenges arise from commercial tensions and geopolitical issues, “This may be punished and reduces growth,” the agency says.
However, the positive “expectations” reflect the views of the continued decrease in public and external debts and a degree of flexibility expected in the Portuguese economy, Despite the increase in external risks and uncertainty about political developments.
The agency also indicates that Portugal’s budget performance should remain better than most of their European peers, With surpluses in the moderate budget, which also confirms the durability of economic growth, which must accelerate to 2.3 % this year.
Fitch was the third main agency to evaluate Portugal this year, But the first to maintain blogging, after January, DBRS rose the national debt classification to (Alia) and S&P in February to upload coding to A. Moody’s, which attributes the A3 classification with a stable perspective and will be pronounced in May.
