Standard & Poor's upgrades Spain to ‘stable’
Standard & Poor's (S&P) says "We see improvement in Spain's external position as economic growth gradually resumes,"
On Friday the credit ratings agency raised Spain's sovereign debt rating outlook to stable from negative, stating that the country's credit metrics appear to be stable helped by budget cuts and structural reforms as the economy is on a modest growth path.
The move came soon after Spain came out of a nine-quarter recession.
Among the three large rating agencies, S&P, Fitch and Moody's, S&P still has the lowest rating on Spain.
At the beginning of November Fitch Ratings had already moved its outlook on Spain to stable Fitch rates the country's sovereign debt at BBB, while Moody's Investors Service has it at A3.
One of Spain's major problems remains its extremely high unemployment rate, which moved above 26% and has yet to tumble down in any noteworthy manner. S&P said that over the medium-to-long term "if left unchecked, high structural unemployment and unfavourable investment trends--compounded by demographic changes, including an aging population--will curb the economy's growth potential."
On Friday Standard & Poor's stripped the Netherlands of its triple-A credit rating, saying that the country's growth prospects have declined and it is not performing as well as peers.
It downgraded the country to AA+, this leaves Germany, Finland and Luxembourg as the only eurozone countries with AAA ratings from S&P.
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