Moody’s lifts outlook for Portuguese rating to positive

Moody’s Investors Service has raised the outlook for its sovereign debt rating for Portugal to positive from stable because the burden of debt the government bears keeps getting lighter and because the banking business keeps improving, Bloomberg reports.

“The first driver of the positive outlook is the continued improvement in Portugal’s fiscal performance, which is now expected to improve the country’s key debt metrics at a faster pace than anticipated a year ago,” the news agency quotes Moody’s as saying.

“The affirmation of Portugal’s Baa3 rating is also driven by macroeconomic fundamentals that balance the relative wealth and diversification of the country’s economy against its modest growth prospects and structural economic constraints.”

Tourism has boosted the Portuguese economy, which expanded last year for the fifth year in a row, and the Portuguese central bank forecasts that the economy will grow by another 1.7 percent this year, Bloomberg says.