...MADRID (S&P Global Ratings) June 4, 2018--S&P Global Ratings said today that the formation of the new government in Spain should have no immediate effect on the sovereign credit ratings (unsolicited; A-/Positive/A-2). Following last week's no-confidence vote against the Partido Popular government and the prime minister Mariano Rajoy, the new minority government will be led by the Socialist party with Pedro Sanchez as the new prime minister. In our view, there is currently a lack of visibility on the details of the government's economic policy strategy, which will continue to be a key driver of Spain's creditworthiness. Mr Sanchez has committed to the existing draft budget for 2018 and we do not expect any significant deviation in the government's budgetary consolidation path in the near term. Given the current political landscape--characterized by a weak government, the situation in Catalonia, and the upcoming preparation of the 2019 budget--the possibility of early elections cannot be...
