Standard & Poor’s lifts Portugal’s outlook to “stable”

Standard & Poor's upgraded Portugal’s outlook to “stable” from “negative”

Standard & Poor's upgraded Portugal’s outlook to “stable” from “negative”

ISTANBUL – International credit rating agency, Standard & Poor’s lifted the outlook of Portugal from negative to stable while affirming ‘BB/B' long and short-term foreign and local currency sovereign credit ratings.

Citing Portugal's economic and budgetary performance, which has outpaced expectations, “The Portuguese government has fulfilled its key commitments under the EU-International Monetary Fund Economic Adjustment Program, which it is scheduled to exit on May 17, 2014, without further official support,” the agency said.

The report estimated the growth performance of Portugal in 2014 and 2015 as 1.4 percent each year, thanks to the sustained export growth after a 1.4 percent contraction in 2013.

“We also expect a gradual recovery in domestic demand as private sector hiring continues to recover. We base our confidence in prospective employment growth partly on the 0.7 percent year-on-year increase in the workforce in the final quarter of 2013,” the agency said.

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