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1 Nov 2013
Fitch confirms Spain’s BBB rating, outlook stable
FXstreet.com (Edinburgh) -Ratings agency Fitch has informed on Friday that it has revised Spain’s outlook to stable from negative, confirming at the same time its BBB status for unsecured bonds.
According to Fitch, fiscal consolidation, a restructuration of the banking system and its diversified economy has collaborated with the revision, amongst other factors. “Spain has exited recession in H213, sooner than forecast in our previous review in February 2013. However, we expect performance to remain very weak (0.5% real GDP growth in 2014)”, assessed Fitch’s analysts.
When comes to forecast, experts at the agency noted “Fitch forecasts that the economy will begin to recover in 2014 as headwinds from fiscal austerity and financing conditions ease. As is currently the case, the recovery will be primarily driven by net exports; domestic demand will remain subdued for a longer period. The agency maintains its potential growth assumption of 1.5% in the second half of the decade”.
According to Fitch, fiscal consolidation, a restructuration of the banking system and its diversified economy has collaborated with the revision, amongst other factors. “Spain has exited recession in H213, sooner than forecast in our previous review in February 2013. However, we expect performance to remain very weak (0.5% real GDP growth in 2014)”, assessed Fitch’s analysts.
When comes to forecast, experts at the agency noted “Fitch forecasts that the economy will begin to recover in 2014 as headwinds from fiscal austerity and financing conditions ease. As is currently the case, the recovery will be primarily driven by net exports; domestic demand will remain subdued for a longer period. The agency maintains its potential growth assumption of 1.5% in the second half of the decade”.