Azorean Government highlights improvement in DBRS outlook - Communication

Secretaria Regional das Finanças, Planeamento e Administração Pública

The Government of the Azores welcomed the decision made by DBRS Morningstar, announced on Friday, to change the outlook on the Autonomous Region of the Azores’ credit rating from “Stable” to “Positive,” whilst maintaining the rating at BBB.

This decision is a sign of growing confidence among markets and international institutions in the Region’s financial and economic path, reflecting the progress made in terms of budget consolidation and economic recovery.

DBRS highlighted that, despite some deterioration in the budget situation in 2025, mainly caused by increased public investment, the Region is showing a solid revenue growth, with special emphasis on the rise in tax revenue and State transfers.

The Regional Government emphasised that this development confirms the effectiveness of the policies implemented, particularly those aimed at boosting the economy, strengthening the tax revenue base and implementing European funds, thereby creating the conditions for a path towards rebalancing public accounts.

DBRS also noted that the 2026 Regional Budget points to an improvement in budget results, benefiting from additional transfers estimated at about €225 million, earmarked for investment and debt reduction.

For the Regional Government, DBRS has confirmed that the current strategy — based on financial responsibility, the gradual reduction of debt and the consolidation of financial autonomy — is yielding tangible results.

The agency acknowledged the decline in the adjusted debt ratio and progress in reducing indirect debt, as well as developments in the restructuring process of the SATA group, whose plan is still underway.

The Regional Government reaffirms its commitment to sustainable regional public finances and to implementing solutions that ensure the viability of public companies, safeguarding the public interest, employment, and the mobility of the Azorean population.

This positive economic context is considered by the Regional Government to be an essential pillar for strengthening the Region’s financial capacity, contributing to the improvement of living conditions for the Azorean population.

The Azorean Government reiterates its determination to pursue policies based on financial rigour, economic growth and the development of the Azores, thereby reinforcing the Region's external credibility and consolidating investor confidence.