On July 30, 2003, Standard&Poor's Ratings Services revised its outlook on the Kingdom of Spain to positive from stable. At the same time, all the ratings on the Kingdom were affirmed, including the 'AA+/A-1+' sovereign credit ratings. The outlook revision reflects Standard&Poor's expectation that the fiscal consolidation achieved over recent years will be maintained going forward, as well as the prospects for continued real convergence with 'AAA' income levels. The fiscal consolidation drive over the past few years has been remarkable. The improvement in Spain's general government deficits and debt burden has been due not only to declining interest payments and strong revenues, but also to tight expenditure control. The general government budget is forecast to
