S&P revises Portugal's rating outlook to negative
2014-01-17 11:55:49
Standard & Poor's on Friday revised its credit rating outlook on Portugal to 'negative' from 'creditwatch negative'.
The rating agency said the latest action reflects the assessment that the risks that could have led it to downgrade Portugal did not materialize in the fourth quarter of 2013.
Nonetheless, the 'negative' outlook suggests that there is at least a one-in-three possibility of downgrade this year.
S&P affirmed the sovereign rating at 'BB/B' as it forecasts the nation to achieve the fiscal targets of 5.5 percent of GDP in 2013. It also expect the coalition government remains committed to the EU/IMF program.
Stronger-than-expected export performance, and an expected bottoming-out of private consumption, amid a modest decline in unemployment, should support Portugal's fiscal performance in 2014, it said.