News today was received with relief by Portugal's government that the DBRS ratings agency has left its credit rating for long term government debt at ‘BBB with a stable outlook’ , one level above 'junk' but enough to ensure the European Central Bank can continue to prop up the country's s finances by buying bonds.
The Canadian agency has held the grade for Portugal’s debt at BBB since May 2014 despite other ratings agencies dropping their assessments to ‘junk status.’
The DBRS rating result was crucial as at least one of the main agencies has to have an ‘above junk’ assessment for Portugal or the European Central Bank will have to cease its frequent large purchases of Portuguese government bonds and its financing of Portugal’s banks.
After the February release of the 2016 draft State Budget, DBRS said it remained comfortable with the rating it had applied to Portugal but that it was watching carefully for signs of fiscal weakness.
Among risks that the Canadian analysts have highlighted were "slippage in the budget and other challenges to public finances, notably in relation to the still high level of public debt," which has risen to an unrepayable 129% of GDP.
DBRS is owned by the morally unacceptable Carlyle Group and Warburg Pincus, another global private equity firm.
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so let Portugal continue its pretence of meeting EU / ECB and IMF targets whilst amassing ever more billions, borrowed at extra low German type rates, of unsustainable debt!
From a DBRS functionary .... “There’s a lot of rhetoric and noise in the marketplace, but face to face it’s pretty clear that the authorities in Portugal are committed, (Portugal) is making pretty significant fiscal adjustments in order to adhere to the Stability and Growth Pact targets and medium-term objectives.”
Committed to what? There are thousands of examples from northern EU citizens, emphasising that Portugal has 'misled' the rest of the EU about its commitment to EU integration of other EU citizens into its economy. Here it is DBRS that has fallen for the 'smoke and mirrors'. Just one example - has anyone found a closed parish or tax office ? There should be many hundreds of them closed as per IMF advice that they are a waste of money - yet so many deceptively re-opened when the noise had died down. The elite VIP Portuguese have learnt nothing from the idiocy over the last 30 years.