S&P Global Ratings Maintains Portugal A+ Credit Rating

S&P Global Ratings maintained the A+ credit rating for Portugal with a positive outlook, forecasting a 1.7% increase in GDP through 2026. The agency attributed this stability to prudent fiscal policies and accelerated capital expenditures under the Next Generation EU program, which have helped the country offset volatility from rising energy prices caused by disruptions in the Strait of Hormuz.

While the agency projects a slight deficit of 0.2% of GDP this year due to recovery costs from Atlantic storm Kristin and energy sector support, it expects these costs to be mitigated by robust private consumption and dividends from Caixa Geral de Depósitos. S&P expects net public debt to fall to 75% of GDP by 2029, providing a buffer against structural pressures such as an aging population and increased defense requirements.