Evaluation: Agency upgrades Spain’s debt rating

Higher revenues and expenditure control will allow the Spanish government to reduce fiscal deficit

MADRID: Canadian credit rating agency DBRS said on Friday it has lifted Spain’s rating to ‘A’ from ‘A (low)’ citing the country’s “strong economic recovery and progress reducing the fiscal deficit in recent years”. “DBRS considers structural improvements in the Spanish economy have strengthened the prospects for sustainable growth,” it said in a statement. “Against this background, DBRS anticipates that higher revenues and expenditure control will allow the Spanish government to continue to reduce its fiscal deficit in coming years.” Another ratings agency, Fitch, had upgraded Madrid’s sovereign debt rating in January while S&P Global followed suit last month. “The economic impact has been confined to the regional economy, and largely offset by stronger external demand,” it said. Spain’s central bank last month increased its growth forecast for 2018 to 2.7% from 2.4%.  

Published in The Express Tribune, April 8^th, 2018.

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