Spain’s Rating, From Less To More On 22 March?

The Spanish economy in 2020: things are not looking so badIn the past six years, the Spanish economy has gone through a spell of strong economic growth

Yann Le Pallec, global head of ratings at S&P Global Rating (S&P), recalled in an interview with Expansión that the ratings agency will upgrade Spain this month if current trends are maintained.

The executive said that Spain’s current rating is A- with a positive perspective, which implies that if certain conditions are fulfilled there will be a rise in credit rating.

In the case of Spain, various elements are being observed. The first is the consolidation of the accounts so that Spain keeps its deficit below 3%. In addition, it should maintain the downward trend in its debt, which has stabilised despite remaining vulnerable to a possible slow down. Lastly, the tense situation in Catalunya should maintain a low profile without provoking a significant impact in the economic fundamentals, as until now.

If the situation remains stable, S&P will upgrade the rating on 22 March. If not, the perspective will be downgraded to stable.

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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.