Once one of the most financially unstable members of the Eurozone, Spain is seen continuing to top the bloc's average economic growth through 2022, S&P Global Ratings said on Friday. The credit appraiser praised the country's balances and lifted its long-term grade in euros and foreign currencies to A with a stable outlook from A- with a positive view. The short-term rating was increased to A-1 from A-2.
"Despite the ongoing political stalemate," the agency's analysts stressed, the budget deficit should keep shrinking to 2% of gross domestic product.
"We could raise our ratings on Spain if budgetary consolidation accelerates beyond expectations, resulting in a decline of the net general government debt to below 80% of GDP or general government interest spending falling below 5% of general government revenues; or if the country makes faster progress in paying down the nation's still-large stock of net external debt," the update reveals.
