Moody's in First Portugal Rating Increase

Rating agency Moody's has increased Portugal's rating to Ba2, in a first such move since the debt-ridden country embarked on a bailout program in 2011.

Improved financial outlook and "stable exports" were among reasons cited by the agency, which also believes that the economic recovery is "gaining momentum".

The new grade is "two levels into junk", up from "three levels into junk", according to the Wall Street Journal.

Standard&Poor's, another leading rating agency, earlier decided to give Portugal stable outlook instead of the previous "negative", but kept its rating at BB, two levels into junk.

In April Lisbon announced the country was returning to capital markets after a three-year pause.

Portugal struck in 2011 a deal with international lenders to implement austerity measures in exchange of EUR 78 B it needed to handle its debts.

Government officials, like those in Greece, insist that no more bailout programs will be needed.

According to data by Moody's and S&P, respectively, Portugal's GDP is to grow 1.2% and 1.4% in 2014.

The government, on its turn, has put its estimates at 1.2%. Lisbon is currently planning to proceed with austerity, lowering current account balance to -2.5% in 2015, down from this year's 5%.

Amid the EU's financial crisis many countries saw their ratings and outlook lowered over inability to tackle their huge debts.