REPUBLICA DE PORTUGAL

EthiFinance Ratings affirms Portugal's unsolicited credit rating at BBB+ with a Stable outlook. The unsolicited rating on the Republic of Portugal responds to the rapid recovery observed during 2021 and 2022 (4,8% y 6,7% respectively), which has been sustained in 2023, albeit at a more moderate pace. Our rating also takes into account the positive impact of the NGEU Funds on potential growth in the medium term, although its economic size is limited and far from converging to the European Union's GDP per capita levels. In addition, we highlight the financial system consolidation carried out in the last years. As for the public finances, while we note the rapid correction of some imbalances in the public accounts, and the decreasing trajectory of the public debt ratio, the latter remains at high levels, representing one of the main limitations of its credit rating.