The sovereign’s rising score reflects a fundamental shift in the political and structural outlook since the new president took office last year.

Investors might be worried by the tail-risk implications of the failed Portuguese lender BES but the sovereign is in a much improved state since completing its three-year bailout programme.

The failure of Portuguese lender Banco Espírito Santo (BES) points to lingering fault lines in the financial regulatory framework and knock-on effects for banks outside the EU.

The sovereign’s risk score has been falling for the past two-and-a-half years, culminating in overdue action by Moody’s.