Fitch Ratings has revised the outlook on Portugal's long-term foreign and local currency Issuer Default Rating (IDRs) to positive from negative, saying the country has made good progress in reducing its budget deficit.

Fitch also noted that the economy was recovering and revised its growth projections for Portugal to 1.3 per cent in 2014 and 1.5 per cent in 2015, from 0.5 per cent and 1 per cent previously.

“Portugal’s fiscal financing conditions have improved markedly since Fitch’s previous rating review in October 2013 and the sovereign has effectively regained market access,” the agency said.

Fitch affirmed Portugal’s IDRs at ‘BB+’. It also affirmed the country’s short-term foreign-currency IDR at ‘B’ and country ceiling at ‘A+’. (Reuters)