However, and despite the borrowing and NPL levels coming down, “they are still high” so “more has to be done to reduce these levels to make them more manageable”, it said.
It also noted that the developments in the real-estate market were generally positive, but this was still an area that needed to be monitored, DBRS added.
As business loans and NPL were coming down, the “banking sector was recovering and financial stability was improving”, DBRS said, adding that Portugal’s efforts were paying off.