Portugal election will not challenge public finance trends

The latest opinion polls for Portugal’s parliamentary elections on March 10 suggest a tight race between two main centrist groups, the Socialist Party (PS) and the Democratic Alliance (AD) – a coalition of centre-right parties led by the Social Democratic Party (PSD). According to Morningstar DBRS, neither is likely to achieve an absolute majority in parliament. Chega’s rise in opinion polls could give them the opportunity to join a right-wing coalition led by AD or facilitate an AD minority government. In any case, the rating agency does not expect the next government, whether led by AD or PS, to deviate