DBRS is expected to maintain Portugal's 'rating' but an upgrade is possible

Analysts expect DBRS to maintain Portugal's rating at 'A' with a positive outlook in its upcoming evaluation. While a rating upgrade is possible, geopolitical uncertainties and European growth risks may lead to a cautious approach. The DBRS acknowledges improvements in public finances and debt reduction, with consecutive budget surpluses and resilient economic indicators supporting the case for an upgrade. However, inflation and rising debt costs are factors that suggest prudence. The Finance Minister hinted at potential changes in light of the positive outlook, while Moody's will assess Portugal's debt next week, marking the final review of the year.