Fitch Ratings is an American credit ratings agency. Hot on the heels of its positive appraisal of Malta comes its Portugal credit rating. On Friday, March 22, 2024, Fitch ranked the country’s long-term foreign-currency Issuer Default Rating (IDR) at A-.

Stable Outlook

The credit ratings agency points to Portugal’s membership of the EU and eurozone. Another healthy factor is a history of fiscal discipline. Also, as Fitch discloses, “Portugal recorded an estimated budget surplus of 1.3% of GDP in 2023, 0.8pp better than our forecast at the last rating review in September 2023.”

There are concerns that a close election might lead to political instability. However, Fitch doubts that this will have a fiscal impact.

Further positive developments relate to Portugal’s “sustained debt reduction” and its “robust economy”.  Allied to the potency of Portuguese banks and a formidable private sector, Fitch has every confidence in the country to continue punching above its weight.

The Green Angle on the Latest Portugal Credit Rating

Jon Green, our Portuguese Residency by Investment specialist believes Fitch’s endorsement reinforces the value of a Portuguese Golden Visa. He says: “When Fitch rates a country in meticulous detail, they use the same criteria as us.”

“Portugal’s position at the heart of the European Union cements its reputation. I understand the consideration Fitch gives to recent political events but they are optimistic that the election result isn’t such a polemic issue as the potential fallout of the US presidential race.”

“The future looks rosy for Portugal. Why? As Fitch points out, the country continues to reduce its debt and enjoys booming economic conditions.”

How to Secure a Portuguese Golden Visa

After reading this article, the ball’s now in your court. We advise, however, that you get in touch with an investment migration expert such as Latitude Group. So, don’t delay and contact us today.