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BCN-02
SPAIN-ECONOMY-RATING-DEBT
S&P upgrades Spain’s debt grade to ‘A’ citing growth
WASHINGTON, Sept 21, 2019 (BSS/AFP) – Ratings agency S&P Global on Friday
upgraded Spain’s sovereign debt to “A” from “A-,” pointing to rosier
prospects for economic growth and a shrinking budget deficit.
The increase was the second since March of last year but S&P said the
outlook for Madrid was now “stable.”
“The upgrade reflects that balanced economic growth and an improving
budgetary position have put Spain’s government debt-to-GDP ratio on a firmer
downward trajectory,” S&P Global said in a statement.
“The country has also made progress in public and private sector
deleveraging.”
S&P analysts forecast a 2019 budget deficit of about two percent of GDP,
the lowest in 12 years, and while the economy is projected to grow 2.2
percent, slowing through 2022.
The Spanish economy has performed well, despite a political stalemate and
a broader economic slowdown in Europe, and should withstand the fallout of a
no-deal Brexit, the statement said.
There are risks to the outlook, however, according to S&P. Spanish
political parties failed to form a government following April elections and a
fresh vote is now scheduled for November.
A minority government could yet emerge from the next elections, leaving
authorities without the political capital to advance further budgetary
measures to protect public finances from future economic shocks.
“We anticipate that political tensions in Catalonia will persist,” the
statement said.
BSS/AFP/HR/0920