LONDON -- Standard&Poor's CreditWire 2/06/96 -- Standard&Poor's affirms its double-`A' rating on the Kingdom of Spain's foreign currency debt and revises its outlook to stable from positive. Standard&Poor's affirms its triple-`A' local currency rating and its `A-1'-plus short-term rating. The outlook is stable (see list below). The outlook revision reflects slower-than-expected progress in the implementation of needed structural reforms as well as greater hurdles for continued fiscal consolidation. After having passed important labor reform legislation in 1994, a series of political setbacks affecting the governing Socialist party, including the dissolution of its parliamentary coalition and the need to call for early elections, impeded further reforms last year and blocked approval of the 1996 budget.
