...MADRID (S&P Global Ratings) Feb. 19, 2019--S&P Global Ratings said today that despite the political stalemate, reflected in last week's rejection of the 2019 budget and subsequent announcement of early elections, Spain's economy is performing well. However, divisions across the political landscape could weigh on economic performance in the medium-to-long term. The ratings on Spain (unsolicited; A-/Positive/A-2) are not likely to be immediately affected by recent political events. Following parliament's refusal to approve Spain's 2019 budget, prime minister Pedro Sanchez announced that early elections will take place on April 28. In light of Spain's disjointed political landscape, we do not expect that early elections will deliver an effective mandate to the next government. We therefore believe it unlikely that Spain's economic challenges, including structurally high unemployment and a substantial social security deficit, will be resolved in the near term. Nevertheless, these political...
