{"id":50737,"date":"2025-07-19T11:08:24","date_gmt":"2025-07-19T15:08:24","guid":{"rendered":"https:\/\/thestockmarketwatch.com\/stock-market-news\/morningstar-dbrs-affirms-top-ratings-for-switzerland-efsf-esm-portugal-confirmed-at-a-high\/50737\/"},"modified":"2025-07-19T11:08:24","modified_gmt":"2025-07-19T15:08:24","slug":"morningstar-dbrs-affirms-top-ratings-for-switzerland-efsf-esm-portugal-confirmed-at-a-high","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/morningstar-dbrs-affirms-top-ratings-for-switzerland-efsf-esm-portugal-confirmed-at-a-high\/50737\/","title":{"rendered":"Morningstar DBRS Affirms Top Ratings for Switzerland, EFSF, ESM; Portugal Confirmed at A (High)"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>Morningstar DBRS<\/strong> has reaffirmed the <strong>AAA<\/strong> long-term issuer ratings for <strong>Switzerland<\/strong>, the <strong>European Financial Stability Facility (EFSF)<\/strong>, and the <strong>European Stability Mechanism (ESM)<\/strong>, all with a <strong>Stable Trend<\/strong>.<\/li>\n<li><strong>Portugal&#39;s<\/strong> long-term issuer rating has been confirmed at <strong>A (High)<\/strong>, also with a <strong>Stable Trend<\/strong>, reflecting its strong fiscal performance and economic resilience.<\/li>\n<li>The confirmations for <strong>Switzerland<\/strong>, <strong>EFSF<\/strong>, and <strong>ESM<\/strong> underscore their robust financial fundamentals and strong institutional support amidst a challenging global environment.<\/li>\n<li><strong>Portugal&#39;s<\/strong> rating confirmation highlights its significant public debt reduction and commitment to fiscal surpluses, positioning it as a reliable investment destination.<\/li>\n<\/ul>\n<p>Morningstar DBRS has announced the confirmation of several key sovereign and supranational credit ratings, reinforcing stability in the European financial landscape. <strong>Switzerland<\/strong>, the <strong>European Financial Stability Facility (EFSF)<\/strong>, and the <strong>European Stability Mechanism (ESM)<\/strong> have all maintained their prestigious <strong>AAA<\/strong> long-term issuer ratings with a <strong>Stable Trend<\/strong>. This decision reflects their enduring credit strengths and the ongoing commitment of their respective guarantors and member states.<\/p>\n<p>For <strong>Switzerland<\/strong>, the reaffirmed <strong>AAA<\/strong> rating with a <strong>Stable Trend<\/strong> is underpinned by its <em>wealthy and diversified economy<\/em>, sound public finances, and a solid external position. Morningstar DBRS noted that Switzerland&#39;s prudent fiscal policy, supported by its debt brake rule and a low public debt level of <strong>37.6% of GDP in 2024<\/strong>, provides ample room to mitigate potential economic shocks. Despite revised downward real GDP growth forecasts for 2025 and 2026, <em>strong institutions and predictable policies<\/em> continue to solidify Switzerland&#39;s status as a safe haven for investors.<\/p>\n<p>The <strong>European Financial Stability Facility (EFSF)<\/strong> and the <strong>European Stability Mechanism (ESM)<\/strong> also saw their long-term issuer ratings confirmed at <strong>AAA<\/strong> with a <strong>Stable Trend<\/strong>. These ratings are fully reliant on their Support Assessment, reflecting the unconditional and irrevocable guarantees from Euro area member states and the strong commitment to support these institutions. The <strong>ESM&#39;s<\/strong> credit ratings are further supported by its <em>very high capitalization<\/em>, effective and diversified funding, and its role as a financial backstop for Euro area sovereigns. Similarly, the <strong>EFSF&#39;s<\/strong> robust guarantee structure and the cohesion among Euro area member states are crucial factors.<\/p>\n<p><strong>Portugal&#39;s<\/strong> long-term foreign and local currency issuer ratings were confirmed at <strong>A (High)<\/strong>, with a <strong>Stable Trend<\/strong>. This confirmation signals Morningstar DBRS&#39;s view that risks to Portugal&#39;s credit ratings are balanced. The country&#39;s economic growth and fiscal balance are expected to <em>outperform the eurozone average<\/em> over the next two years. Portugal&#39;s public debt ratio significantly declined from <strong>116.1% of GDP in 2019<\/strong> to <strong>94.9% in 2024<\/strong> and is projected to fall below <strong>90.0% of GDP<\/strong> within the next two years, driven by high primary surpluses and nominal output growth. The government&#39;s commitment to generating small fiscal surpluses further reinforces investor confidence.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways Morningstar DBRS has reaffirmed the AAA long-term issuer ratings for Switzerland, the European Financial Stability Facility (EFSF), and 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