Bankinter | The rating agency justifies its decision on financial and external resilience, strong GDP growth in recent years and structural reforms. It also considers that the recent deficit reduction gives some confidence that, once the COVID-19 crisis is overcome, public debt will maintain a downward trend. It estimates GDP will see a decline of 9.6% this year and will grow 4.4% in 2021.
Yann Le Pallec, global head of ratings at S&P Global Rating (S&P), says 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.
After recently raising Spain’s sovereign ratings to ‘BBB+’ from ‘BBB’, S&P has also improved its stance on some of the country’s top banks. S&P’s upgrades comes in the same week as the Madrid local authorities said they could not renew the contracts with that agency.