Portugal is upgraded out of junk status and its markets jump

Portugal's stock market is surging and its government borrowing rates are falling after the country recovered its investment-grade rating from Standard & Poor's.

The Lisbon stock exchange rose more than 1 percent Monday and the 10-year bond yield dropped 0.29 percentage points — an unusually large one-day increase — to 2.49 percent, the lowest rate since late 2015.

S&P said late Friday that Portugal has made "solid progress" in restoring its financial health since needing a 78 billion-euro ($93 billion) bailout in 2011 amid the eurozone crisis. It raised its rating from BB+, or junk status, to BBB-.

Fitch and Moody's, the other two main ratings agencies, still rate Portugal's debt at junk.

After a period of austerity and recession, Portugal expects the economy to grow 2.5 percent this year.