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Moody’s Raises Spain Rating One Notch on Improved Credit Profile

  • Spain boosted by strong growth despite political turbulence
  • Cites improved banking fundamentals, balanced growth outlook

Spain’s sovereign rating was raised one notch to Baa1 by Moody’s Investors Service, with a stable outlook, completing a full rating upgrade by all the main credit services.

"Recent years have seen gradual, but increasingly sustainable, improvements to Spain’s credit profile. Much has been done to address the weaknesses in the banking sector that emerged during the financial crisis. It has also become increasingly clear that structural changes in the economy have changed the growth model to one that is broader-based and more sustainable than in past recoveries,” Moody’s said in a statement on Friday. Spain’s previous rating was Baa2.