More than ten years later, Portugal will once again be part of the FTSE World Government Bond Indexthe world’s leading sovereign debt index with A-level ratings.
“Portugal will be included in the index after its fixed rate debt market in local currency has met the three necessary criteria: market size, rating and a level of 2 in terms of market accessibility”, indicates the London Stock Exchange Group, in a statement released after the Wall Street close.
Portugal will have a weight of 0.61% in the FTSE WGBI index, based on a weighting by market value, he adds.
One of the criteria taken into account in the market size category is, for example, that the country in question has at least a total of 40 billion euros in debt stock. When this value drops to less than half the entry level, it no longer meets the criterion.
As far as the rating is concerned, it must guarantee a minimum rating of A- by S&P and A3 by Moody’s. S&P was, in early March, the last of the four big agencies to place Portugal in the restricted A club.
Portugal’s entry into this list, a global benchmark, is positive for the country, as it increases its ability to obtain financing.
Tags: Portugal returns main global debt showcase November Obligations
