- We have revised our average 2014-2016 real GDP growth projections for Spain upward to 1.6% from 1.2% reflecting the effects of labor and other structural reforms.
- We are therefore raising our long- and short-term sovereign credit ratings on Spain to ‘BBB/A-2′ from ‘BBB-/A-3′.
- The outlook is stable, reflecting our current view that risks to the ratings on Spain will remain balanced over the next two years.
London 25 April 2014
Fitch Ratings has upgraded Spain’s Long-term foreign and local currency Issuer Default Ratings (IDRs) to ‘BBB+’ from ‘BBB’ The issue ratings on Spain’s senior unsecured foreign and local currency bonds have also been upgraded to ‘BBB+’ from ‘BBB’. The Outlooks on the Long-term IDRs are Stable. The Country Ceiling was raised to ‘AA+’ from ‘AA’ and the Short-term foreign currency IDR affirmed at ‘F2’.
London, 21 February 2014
Moody’s Investors Service has today upgraded Spain’s government bond rating to Baa2 from Baa3 and assigned a positive outlook. Concurrently, Moody’s has also upgraded Spain’s short-term rating to (P) Prime-2 from (P) Prime-3.
The key drivers for upgrading Spain’s debt ratings and assigning a positive outlook are as follows:
- The rebalancing of the Spanish economy towards a more sustainable growth model, which is being underpinned by structural improvements in the country’s external competitiveness, and the ongoing deleveraging in the domestic economy.
- The progress made in implementing broad structural reforms, particularly in the labour market and the public pension system, structural fiscal measures and changes to the fiscal framework for the country’s regional governments as well as the restructuring of the Spanish banking system. These efforts support Moody’s expectation of stronger, more sustainable economic growth over the medium term and continued improvements in the resilience of government finances.
- The improvement in the government’s funding conditions since the height of the euro area sovereign debt crisis in mid-2012. In Moody’s view, the fall in borrowing costs reflects the combined effects of the European Central Bank’s (ECB) policy announcements and actions, the evident improvements in the Spanish economy, and the government’s track record of implementation of fiscal and structural policy measures.
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Transparency International has consistently warned Europe to address corruption risks in the public sector to tackle the financial crisis, calling for strengthened efforts to corruption-proof public institutions.
Denmark, Finland and New Zealand held on to their top slots in the ranking, while Afghanistan,North Korea and Somalia remained at the bottom.
Greece is ranked the most corrupt country in the 27-nation European Union.
“I’m waiting the decisions of the European Central Bank. On that basis I will act in the interests of the euro and Spain. When there are countries financing itself at negative rates and other with too high yields, it means that something is wrong in the monetary union. If the ECB way of action will be positive for the whole EU, I will make demand, otherwise not.“
source: Corriere della Sera
Data released last week showed that customers withdrew €74bn of deposits in July alone – equivalent to 4.7% of total deposits and the biggest monthly outflow since records began. Since June last year, clients have withdrawn €233bn (see chart), or 13% of the total then.