In a report, S&P explains that the stable outlook reflects the expectation “that the high levels of public and external debt in Portugal will continue to decline, balancing the risks to economic growth and the budgetary trajectory arising from a potential stagflation in the Europe” and the uncertainty of the geopolitical context.

In September last year, the agency had raised the 'rating' (notation) of Portugal from 'BBB' to 'BBB+', changing the outlook to stable.

In the report, the agency points out that it expects that Portugal will present primary budget surpluses in the coming years, which will allow it to reduce the net debt in relation to the Gross Domestic Product (GDP) below 100%, despite the fact that the cost of issuing debt should increase.

S&P analysts expect economic growth to slow in 2023, but the "medium-term outlook remains strong", supported by the expected execution of European funds.