Fitch maintains Spain’s rating at A- and outlook “Stable”, while Moody’s keeps Portugal’s rating and outlook at A3 “Stable”

portugal espana

Bankinter | Fitch maintains Spain’s rating at A- and the outlook “Stable”, given the resilience of the economy and the improvement in the labour market. Fitch estimates GDP growth of 2.1% and 2.0% for 2024 and 2025 respectively. Moreover, the credit rating agency points to the need to address the high structural unemployment rate.

No surprises for our analysts: “Fitch maintains its credit rating one notch below S&P’s equivalent at A stable and one notch above Moody’s equivalent at Baa1 in mid-March, although it raised its outlook to positive from stable”.

On the other hand, Moody’s maintains the rating and outlook of the Portuguese Republic at A3 “Stable”.

Analysis: Good news for the Portuguese economy, which maintains its A rating from the main rating agencies. As expected, Moody’s maintains Portugal’s debt rating, following the upgrade in November 2023. It continues to see the economy pointing to a good performance and expects GDP growth of +1.8% in 2024 and +1.9% in 2025 (versus 1.7% and +1.8% in our estimates). However, Moody’s refers to the domestic political environment as the main source of uncertainty, as it considers the risks of early elections to be elevated.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.