DBRS revises Spain to stable

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 stable from positive.

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

DBRS said the change in trend reflects the inability of the main political parties to form a coalition government following general elections on Dec. 20 of last year, as well as the risk that a new government, when established, will roll back labor market reforms and fiscal consolidation measures. These policies have been instrumental in spurring rapid job creation and instilling confidence.

Given the inconclusive electoral outcome, there is greater uncertainty over the future direction of economic policies, the agency said.

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