DBRS Keeps Portugal's Credit Rating At Investment Grade

Portugal maintained its tenuous hold on investment grade status on Friday after DBRS affirmed the country's credit rating at BBB with a stable outlook. However, DBRS warned that Portugal faces challenges due to significant public sector debt, low economic growth and fiscal pressures. "Although the general government debt ratio peaked in 2014, it remains high at an expected 129.7% of GDP in 2016, and forecast to decline only gradually," said DBRS in a statement. The excessive debt ratio makes the country "vulnerable to adverse shocks."