DBRS Morningstar, a Canadian credit ratings agency, has maintained the Portugal’s sovereign debt rating at BBB (high), with a stable outlook, while notes the “severe” impact the Covid-19 pandemic has had on the country’s economy.
In a note released on Friday, the agency stresses the “disruption” caused to the economy by the global health crisis.
In March, DBRS had also issued a note maintaining Portugal’s rating and outlook, while stressing that the “small and open” nature of the country’s economy made it vulnerable to any crisis.
A credit rating expresses the credit risk – that is, the ability of an issuer, whether a country or company to pay its debt. A ‘stable’ outlook indicates that no rating change is expected soon.