DBRS changes Spain trend to positive

DBRS said it confirmed the Kingdom of Spain’s long-term foreign and local currency issuer ratings at A (low) and changed the trend to positive from stable.

The agency also confirmed the short-term foreign and local currency issuer ratings at R-1 (low) with a stable trend.

DBRS said the positive trend underlines its view that the strengthening economic recovery outweighs uncertainty over governance in the next administration following general elections later this year. Voters will be weighing the benefits of a broad-based economic recovery, against a desire for change after years of austerity.

Recent polls point to the likelihood of a Popular Party-led or Socialist-led coalition, and DBRS is of the view that the new coalition will continue the responsible fiscal and structural reform policies of the current administration. If this occurs, the public debt burden is likely to stabilize next year at close to 100% of GDP before declining, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.