Not long ago, investors were wondering what would happen if Spain's credit rating was reduced to "junk bond" level in the wake of a succession of reductions to the rating from the leading agencies Standard & Poor ("BBB") and Moody's ("Baa3").
But if in the past, analysts and investors did not want anything to do with Spain, they are now beginning to show strong support for the country (the last evidence of which was the "Viva España" report from Morgan Stanley). If this is the current case, then the credit ratings agencies could start to share the same opinion.
Citing sources in the banking sector, specifically financial institutions that work with the Treasury, the Spanish newspaper Expansión reported on Friday that this "change in outlook" has resulted in the public entity and many others in the financial sector to expect "S&P to improve their outlook for Spain's rating to stable prior to the end of the year". Specifically, the president of the Centre for Economic and Politic Research (CEPR), Guillermo de la Dehesa, believes that the agency "is waiting for publication of the official fourth quarter figures that will confirm if the economy has reached the bottom".
Back in June, the company noted that they would be able to revise their outlook on Spain to stable "if we continue to see improvements to the external situation of the economy, at the same time as returning to growth, or if the structural and fiscal reforms, in addition to the support received from the Eurozone, stabilise the credit metrics".
Source: LiveCharts
But if in the past, analysts and investors did not want anything to do with Spain, they are now beginning to show strong support for the country (the last evidence of which was the "Viva España" report from Morgan Stanley). If this is the current case, then the credit ratings agencies could start to share the same opinion.
Citing sources in the banking sector, specifically financial institutions that work with the Treasury, the Spanish newspaper Expansión reported on Friday that this "change in outlook" has resulted in the public entity and many others in the financial sector to expect "S&P to improve their outlook for Spain's rating to stable prior to the end of the year". Specifically, the president of the Centre for Economic and Politic Research (CEPR), Guillermo de la Dehesa, believes that the agency "is waiting for publication of the official fourth quarter figures that will confirm if the economy has reached the bottom".
Back in June, the company noted that they would be able to revise their outlook on Spain to stable "if we continue to see improvements to the external situation of the economy, at the same time as returning to growth, or if the structural and fiscal reforms, in addition to the support received from the Eurozone, stabilise the credit metrics".
Source: LiveCharts
