FITCH RAISES SPAIN’S RATING
After three years in the firing line due to concerns over its credit worthiness, Spainis back in favour with the rating agencies. These companies are revising their call on Spain’s ability to pay its debtsafter the country this year exited theEuropean Union bailout programme it was forced to accept in 2012.
In April, Fitch upgraded Spain’s sovereign credit rating to BBB+ from BBB, three steps above junk status, reflecting growing confidence in the country’s fiscal andeconomic recovery. The Eurozone’s fourth largest economy finally exited a two-year recession in the third quarter of 2013. Fitch’s upbeat review came after peer Moody’s raised its Spain rating one notch to Baa2 in February. And just last month, Standard and Poor’s upped its credit rating one notch to BBB from BBB-. The implementation of structural reforms to cut the country’s hefty deficit and boost competitiveness,as well as improved market access, is behind the positive reading.