Moodys forecasts 2021

Current EU major challenges-Brexit and Italy budget- move but still remain stranded

The Cut In Spain’s Current Rating Could Lead To A Downgrade Of Over 50% Of Companies In 18 Months

Moody’s points out that Spanish public debt is at maximum levels for a century. Thus, it will take into account in its next rating reviews whether the Spanish government presents a credible plan to reverse the fiscal deterioration aggravated by Covid-19. A downgrade of the current rating (Baa1 with a stable outlook) could lead to the downgrade of more than 50% of Spain’s companies’ in 18 months. Even so, this warning is not exclusive to Spain (public debt/GDP 120%), as there are other countries with high debt problems (Italy 158%, Greece 200%, Portugal 137%).