S&P upgrades the Lisbon Metro rating by two levels.
The Standard & Poor’s raised the credit rating of the Metropolitano de Lisboa from ‘CCC+’ to ‘B’, which is equivalent to an improvement of two levels, moving from seventh to fifth “junk” grade. Thus, the company upgraded from a high level of default risk for a level above, yet considered highly speculative.
The outlook is still negative – reflecting the possibility of a further decrease of Portugal’s financial ability to help the company. A negative outlook means there is probability of a further cut in the rating.
Last January this agency had downgraded the Lisbon Metro to ‘CCC+’, following the cut of Portugal’s long-term government bond ratings.
“The Portuguese Government has been implementing a series of measures since June 2011, reinforcing its ties with the Metropolitano de Lisboa, including comprehensive and timely financial support,” said the report from S&P.
Furthermore, the document continues, “the State Budget for 2013 includes sufficient loans to meet the Metro’s debt service, so we’ve revised positively our outlook of the company’s lead to the government from ‘strong enough’ to ‘full’, as well as the likelihood of the government’s support from ‘high’ to ‘very high’.”