DBRS has raised its credit rating for Portugal by one notch to BBB, its second-lowest investment grade, with a stable outlook.

The rating agency issued a written statement saying: “The upgrade reflects DBRS’s assessment that Portugal’s outlook for public debt sustainability has improved.”

DBRS praises the Portuguese Government for its fiscal discipline and remarks that interest costs have kept falling.

“The Portuguese economy also continues to grow at a steady pace,” DBRS says.