Standard and Poor’s said it was raising the debt rating on the country’s foreign debt one notch to BBB- on the receding risks.

“The upgrade reflects our improved forecast for Portugal’s GDP growth during 2017-2020, as well as the solid progress it has made in reducing its budget deficit,” S&P said in a statement.

The agency forecast the Portuguese economy will grow by more than two percent on average through 2020, up from the previous forecast of 1.5 percent.

Meanwhile, Lisbon is expected to meet its budget deficit target of 1.5 percent of GDP this year “putting the government debt to GDP ratio on a more firmly declining path,” the statement said.

Portugal is posting its fourth consecutive year of growth since 2010, and the country in June made an early payment to the International Monetary Fund on the 29.6 billion euro loan it was granted in 2011 as part of a bailout plan.

The IMF projects the country’s economy will expand by 2.5 percent this year and two percent in 2018.