Fitch Ratings has revised its outlook on Spain to stable from negative, due to its recent policy track record with regard to fiscal consolidation, the country's economic recovery, its banking sector restructuring and improving financing conditions.
The credit agency announced the revision in a report published on Friday after the European market close and affirmed Spain's rating at 'BBB'.
"Spain has improved its policy track record in 2012-13," Fitch said, commenting that the general government deficit/gross domestic product ratio has been reduced by 2.5% despite cyclical headwinds.
Fitch also mentioned that the banking sector restructuring has "advanced well" since 2012 and noted that Spain exited the recession sooner than the agency had expected.
Though Fitch does forecast that the Spanish economy will begin to recover in 2014, it noted that performance to "remain very weak" with an estimate of 0.5% real GDP growth in 2014.
According to the report, the stable outlook reflects the fact that Fitch believes "upside and downside risks to the ratings are balanced", that Spain will retain market access and that the risk of fragmentation of the Eurozone "remains low".
Source: LiveCharts
The credit agency announced the revision in a report published on Friday after the European market close and affirmed Spain's rating at 'BBB'.
"Spain has improved its policy track record in 2012-13," Fitch said, commenting that the general government deficit/gross domestic product ratio has been reduced by 2.5% despite cyclical headwinds.
Fitch also mentioned that the banking sector restructuring has "advanced well" since 2012 and noted that Spain exited the recession sooner than the agency had expected.
Though Fitch does forecast that the Spanish economy will begin to recover in 2014, it noted that performance to "remain very weak" with an estimate of 0.5% real GDP growth in 2014.
According to the report, the stable outlook reflects the fact that Fitch believes "upside and downside risks to the ratings are balanced", that Spain will retain market access and that the risk of fragmentation of the Eurozone "remains low".
Source: LiveCharts
