Portugal, whose sluggish economy has imperiled both its credit worthiness and a key central bank lifeline, is confident it will not lose its sole investment grade rating, a top government official told CNBC on Saturday.
In recent weeks,yields on Portuguese debt have risen on fears that ratings agency DBRS would cut the country's rating to junk, following similar moves by Moody's, Standard & Poors and Fitch . Speculative, or junk, ratings raise borrowing costs on sovereign and corporate issuers.
In Portugal's case, it could also mean the loss of access to the European Central Bank's quantitative easing (QE) program. In order to qualify for that liquidity, and for the ECB to take its bonds as loan collateral, Portuguese government debt must have an investment grade rating.
"I would not expect any change in rating or outlook by DBRS on the 21st of October," Ricardo Mourinho Felix, Portugal's Secretary of State for Finance and the Treasury, told CNBC on the sidelines of the International Monetary Fund annual meeting in Washington.