Fitch upgrades Porto's rating in terms of compliance with financial commitments

The North American credit ratings agency Fitch raised the rating of Porto from ‘BBB+’ to ‘A-’, with stable prospects. The evaluation of the various indicators proves the solidity and financial health of the Municipality.

According to Fitch, the 'A' ratings of the long-term Issuer Default Ratings (IDR) indicate that the risk of timely and full non-payment of financial commitments by the Municipality to its creditors or investors is very low.

Fitch's decision follows an upgrade of Portugal's rating to 'A-' in September this year, as Porto's rating is limited by the sovereign rating.

Short-term IDRs, on the other hand, settled at the 'F1' level, the highest for a long-term IDR 'A-'. This classification is accompanied by Fitch's assessment of the robustness and flexibility of liabilities and liquidity as' average 'and the liquidity coverage ratio for 2024, considered above 1.4, ensuring the continuity of the ability to meet short-term obligations.

In this assessment, the Independent Credit Profile remained at 'aa', mainly due to the agency's expectations for the primary metric, debt repayment, which is in the middle of the corresponding range.