The international financial ratings agency Fitch said last week that it would retain Portugal’s rating to AA- with negative outlook.
The agency said it wouldn’t downgrade the country further but would keep a close eye on its economic performance in the coming months.
However, it stated that it was still concerned about perspectives for medium-term economic growth in both Portugal and Spain.
The concerns arose one week after the International Monetary Fund (IMF) had issued an alert over Portugal’s excessive debt – consumer, public and foreign.
The Secretary-General of the IMF, Dominique Strauss-Kahn, then highlighted the difference between the Portuguese and Spanish situations, stressing that they were “not the same”; particularly since levels of public debt are lower in Spain while levels of private (consumer and company) debt are higher in Portugal.
Fitch ratings also made reference to the Greek situation, stating that it intended to analyse the progress and impact of the Greek government’s Budget Plan and austerity measures before taking any further decision over changing the country’s debt rating.
