The Japanese R&I agency improves Spain's credit rating

• It raises its rating to A with a stable outlook due to the "solid" growth of the Spanish economy and improvements in the fiscal position, the foreign sector and the financial system

The Japanese agency Rating and Investment Information (R&I) has revised upward the credit rating of the Kingdom of Spain, from A- to A with a stable outlook.

One of the main factors for improving the rating, according to R&I, is that the Spanish economy continues to show "solid growth". It emphasizes that Spain grows more than the group of countries in the euro zone, thanks to investment and private consumption.

In its upward revision, the Japanese agency has also taken into account "the improvement of Spain's fiscal position that has allowed it to exit – after 10 years – the Excessive Deficit Procedure". R&I highlights the European Commission's forecast that the deficit will be reduced in 2019 and in subsequent years, as well as the possibility of achieving a primary surplus, which would allow the debt / GDP ratio to continue to be reduced.

It also highlights the improvement in the external situation of the Spanish economy, which has resulted in an increase in competitiveness, the number of exporting companies, the maintenance of current account surpluses and the reduction of the debtor position.

Together with these elements, the Japanese agency has taken into account to improve the credit rating of Spain, improving the situation of the financial system, in terms of reduction of delinquent loans and increase of capital reserves and profitability, as well as pro-European positioning of the main political parties of our country.