DBRS applauds Azores and Madeira for good financial management

The ratings agency DBRS has maintained the ratings for Madeira and the Azores at ‘investment grade’ and has improved the ‘outlook’ of Madeira’s economy because of the region’s improved financial management.

At the same time, it has also maintained the rating of the Azores islands at investment grade and has also improved their economic outlook.

In the case of the Autonomous Region of the Azores, the region maintains a BBB rating with its short and long term outlook upgraded from stable to positive.

The positive rating for the Azores is explained by the improvement in the fiscal position of the Autonomous Region in 2023, due to an increase in tax revenues resulting from the “strong economic impulse” of recent years.

“This fiscal improvement should allow the Region to continue to make progress towards a balanced budget and stabilise its debt burden.

In addition, SATA airline has considerably improved its operational performance since 2021, facilitating the completion of the Region’s divestment of SATA’s international business division,” DBRS explained.

As for Madeira, also with a BBB rating, the rating firm highlighted the Region’s “continued fiscal improvement” as well as the growth in tax revenues stemming from “strong” economic performance.

“This fiscal improvement should allow the region to continue to progress with reducing the trajectory of its debt. Moreover, the Portuguese central government strongly supports the region, especially through guarantees on its long-term financing provided again in the State Budget of Portugal for 2024,” said the rating company.