Moody’s upgrades Portugal’s debt rating

Moody’s Investors Service on Friday upgraded Portugal’s debt ratings a notch to Baa2 from Baa3 citing the country’s “robust recovery” boosted by support from the European Union.

“Looking beyond 2021, the Next Generation EU (NGEU) funds will provide important support to medium-term growth,” the ratings agency said.

The EU in June approved Lisbon’s reform plan, which unlocked 16 billion euros in funding.

“The Portuguese economy is experiencing a robust rebound from the pandemic recession in spite of ongoing challenges in the tourism sector,” the statement said.

The report noted that employment has normalized and aided consumption, while “stronger rebounds in key export markets are supporting a recovery in goods exports.”

Moody’s shifted the debt outlook to stable from positive.