Standard&Poor's believes that Spain will continue to adhere to its front-loaded budgetary strategy and implement structural reforms, although the enduring economic and financial weaknesses will likely continue to weigh on the current ratings. We are affirming our 'AA/A-1+' sovereign ratings on the Kingdom of Spain. The negative outlook reflects the possibility of a downgrade if Spain's fiscal position deviates materially from the government's target and its economic and financial vulnerabilities persist. On Feb. 1, 2011, Standard&Poor's Ratings Services affirmed its 'AA' long-term and 'A-1+' short-term sovereign credit ratings on the Kingdom of Spain. The outlook remains negative. The 'AAA' transfer and convertibility assessment is unchanged. The ratings on Spain reflect the benefits of what we view
