Moody’s Investors Service has raised its sovereign debt rating for Portugal to Baa3 with a stable outlook, meaning Portuguese debt is now investment grade instead of junk, Xinhua reports.

The Chinese government-run news agency quotes a written statement issued by the rating agency as saying the re-rating takes into account the Portuguese fiscal consolidation drive, the sustainability of Portuguese public-sector debt and the prospects for Portuguese economic growth.

The report, citing the Portuguese Finance Ministry, says that until the Moody’s re-rating none of the main the main rating agencies had regarded Portuguese debt as investment grade since 2011.

A good rating draws in investment and makes borrowing cheaper, Xinhua quotes the ministry as saying.