Improvement: Moody’s upgrades Spain’s credit rating

Moody’s raises Spain’s credit rating by one notch citing progress in reforms to put economy on more sustainable track.

WASHINGTON: Moody’s raised Spain’s sovereign credit rating by one notch Friday, citing progress in reforms to put the economy on a more sustainable track. Moody’s Investors Service upgraded the rating to Baa2 from Baa3, and gave the country a ‘positive outlook’, suggesting the potential of a further upgrade. Spain has made faster-than-expected progress in rebalancing the economy away from real-estate investment, where a 2008 price bubble crash sent the economy reeling, the ratings firm said. Moody’s highlighted the authorities’ progress in implementing broad structural reforms, especially in the labour market and the public pension system, as well as other measures including the restructuring of the Spanish banking system. Spain’s economy shrank by 1.2% over the whole of 2013, but exited recession in the third quarter with 0.1% growth.

Published in The Express Tribune, February 23^rd, 2014.

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