Research Update: Kingdom of Spain Outlook Revised To Positive On Strong And Balanced Economic Performance; 'BBB+/A-2' Ratings Affirmed

We project that Spain's strong and balanced economic performance will continue in 2017 and 2018, with real GDP growing by 2.5% and 2.1%, respectively. We expect Spain's high general government budgetary deficit will narrow to about 3.3% of GDP in 2017, from an estimated 4.5% of GDP last year, with stabilization in net government debt at just below 90% of GDP over our forecast horizon through year-end 2020. We are therefore revising our outlook on Spain to positive from stable and affirming our 'BBB+/A-2' ratings. The positive outlook signals the possibility that we could raise our ratings on Spain within the next 24 months, if strong economic performance and budgetary consolidation continue in line with our expectations or if monetary

...We project that Spain's strong and balanced economic performance will continue in + 2017 and 2018, with real GDP growing by 2.5% and 2.1%, respectively. We expect Spain's high general government budgetary deficit will narrow to about + 3.3% of GDP in 2017, from an estimated 4.5% of GDP last year, with stabilization in net government debt at just below 90% of GDP over our forecast horizon through year-end 2020. We are therefore revising our outlook on Spain to positive from stable and + affirming our '###+/A-2' ratings. The positive outlook signals the possibility that we could raise our ratings on + Spain within the next 24 months, if strong economic performance and budgetary consolidation continue in line with our expectations or if monetary policy transmission improves further....

Research Update