Upgrade of Spain’s score to EEE- from EE+ and changed outlook to stable from positive

Paris, November 16, 2017 – Beyond Ratings has upgraded Spain’s long-term score to EEE- from EE+ and changed outlook to stable from positive.

This upgrade reflects Beyond Ratings expectation expressed one year ago that Spain’s recent growth trend is strong and well balanced. The real GDP surpassed its pre-crisis peak at the end of 2016. The economy grew by 3.3% in 2016 and is expected to expand by 3.1% this year. Past structural reforms, wage moderation and resulting cost competitiveness gains, favourable monetary and external conditions, and fiscal relaxation have provided impetus to the recovery. Even if Spain’s economy has become more competitive, flexible and resilient, political fragmentation remains the main obstacle to Spanish growth. With this in mind, the results of the early elections in Catalonia on next December 21 will have to be closely monitored.

As a reminder, Standard & Poor’s credit rating for Spain stands at BBB+ with positive outlook, as Fitch credit rating. Moody’s credit rating for Spain was last set at Baa2 with stable outlook. Thus, if political turmoil ends by the end of 2017, we can anticipate upgrades from the three main credit rating agencies.