• S&P raises its rating to A with a stable outlook, highlighting the higher growth in Spain compared to the euro zone, the strong downward trend of the debt / GDP ratio and the progress in fiscal consolidation
  • For its part, DBRS reaffirms Spain's rating in A and improves the outlook from stable to positive due to solid economic growth and sustained improvement in public finances.

September 20, 2019. The international rating agencies S&P and DBRS have improved, respectively, the rating and credit perspective of the Kingdom of Spain. S&P has raised the rating of our country, from A- to A with a stable outlook. DBRS, meanwhile, maintains Spain's rating in A and improves its outlook from stable to positive.

In the report in which it has published its upward revision, S&P highlights the greater growth of our economy against the euro zone, estimating that it could be maintained in the next three years. It considers that Spain is better positioned to face external challenges such as Brexit or the European economic slowdown. In this sense, the competitiveness gains, which are translating into current account surpluses in recent years, stand out.

S&P highlights the progress in fiscal consolidation, which will allow the deficit to be in 2019 at around 2%, the lowest since 2007. It also shows that more balanced economic growth and improvement of the fiscal position they are allowing a firmer reduction in the debt / GDP ratio.

S&P expects a further decline in the deficit and public debt compared to its previous report.

DBRS highlights strong economic growth

For its part, DBRS has reaffirmed Spain's rating in A, improving the outlook from stable to positive.

The rating of the Canadian agency is based on the strength and diversification of the Spanish economy, which has a competitive foreign sector and a sustained improvement in public finances. All this is allowing to maintain a solid growth, with a more balanced model. DBRS points out that the main risks for the Spanish economy are external, including Brexit, protectionism, the European slowdown or the rise in oil.

DBRS believes that the debt / GDP ratio will continue to decline in the coming years thanks to primary surpluses, low interest rates and economic growth. Highlights the work done by the Treasury to diversify the investment base and extend the average life of the portfolio, which together with monetary policy reduce the vulnerabilities of the Spanish public debt.

Finally, it underlines the strengthening of the financial sector, in terms of reduction of problematic assets, greater capitalization of entities and maintenance of profitability.

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