New York, NY, United States (4E) – Fitch Ratings raised Spain’s credit rating by one notch, citing lower financial risks for the country.
Fitch increased its rating to triple-B-plus from triple-B, lifting the country’s debt deeper into investment-grade territory. The rating firm also reaffirmed its stable outlook for the country.
Spain’s rating was downgraded by Fitch to triple-B in June 2012 due to the euro zone’s dim outlook as European leaders tried to boost confidence in nations struggling with debt. Since then, financing conditions have improved, the economic outlook is more stable, and the risk of Spanish banks placing more burden on the sovereign has waned, according to Fitch.
Over the past two years, the country’s fiscal track record has been “strong” and its fiscal debt declined, the firm added.
Fitch said that while the Spanish government’s deficit continues to be huge, the ratings firm could raise the country’s rating again if its efforts in cutting the deficit improve.