"Moody's Ratings has completed its periodic review of Portugal's ratings […]. This publication does not announce a rating action," it said in a statement.

Portugal's assessment reflects a competitive and diversified economy, relatively high levels of wealth, as well as high institutional strength.

Still, they said there are challenges, such as a high public debt ratio relative to most countries with a similar rating.

The document also refers to the legislative elections, with the financial rating agency emphasising that the increase in political uncertainty should not significantly affect Portugal's economic and fiscal trends.

Moody's estimates real GDP - Gross Domestic Product growth of 2.2% in 2025 and 1.9% in 2026, although it notes that US tariffs may weigh on this forecast.

On the other hand, it believes there will be robust economic growth and budget surpluses throughout 2025-2026.

The "stable" outlook reflects that risks are balanced.

The more positive trends at the economic and fiscal level are penalized by disadvantages such as lower-than-expected external demand due to "parliamentary fragmentation".

Portugal is also exposed to climate risks, which may have a greater negative impact than anticipated on fiscal metrics.

Moody's also argued that higher growth could be supported by "more effective" implementation of investment projects and macroeconomic reforms linked to the national Recovery and Resilience Plan (RRP).

The financial rating agency Scope also decided to maintain Portugal's rating at "A".

This decision was influenced by the "substantial reduction in public debt", supported by a history of prudent fiscal policy and improvements in economic resilience.

In November, the agency had raised Portugal's long-term rating to "A" and changed the outlook to "stable".

This year, both DBRS and S&P improved the sovereign debt rating in their reviews, which took place even before the political crisis, while Fitch maintained Portugal's rating at 'A-'.

The 'rating' is an assessment given by financial rating agencies, with a major impact on the financing of countries and companies, as it assesses credit risk.