Fitch revises Portugal's outlook to positive from stable

​​​​​​​By Ovunc Kutlu

ISTANBUL (AA) - Fitch Ratings said Friday it revised the outlook on Portugal's long-term foreign-currency issuer default rating to positive, from stable, and affirmed its A- rating.

The agency said the positive outlook reflects the country's continued progress in reducing its public debt, and its commitment to prudent fiscal policy.

"Portugal's external position has seen rapid improvements over the past years, with public and private deleveraging, a trend that is set to continue over the forecast period," it said in a statement.

Fitch said Portugal's rating is supported by institutional strengths that are underpinned by its EU and eurozone membership.

The factors, however, are balanced against its high levels of public and external debt.

The rating agency forecasts Portugal's economic growth at 1.9% for both 2025 and 2026, driven by increased consumption and robust investment, and supported by falling interest rates.

"These rates exceed expected eurozone growth of 1.5% for 2025 and 1.4% for 2026," it noted.