Moody’s Upgrades Spanish Economic Outlook

Ratings agency Moody’s has raised its outlook for Spain’s economy from “negative” to “stable”.

Moody’s said there had been a real improvement in the economy and government finances.

Last week, the Standard and Poor’s ratings firms also raised its outlook for Spain on signs of economic improvement.

Debt-laden Spain has emerged from a two-year recession, with export growth and companies becoming more confident.

But unemployment remains high, at 26%, and economic growth is expected to be shallow.

Nevertheless, Moody’s said: “The external accounts continue to improve, the situation in the labour market has stabilised and the private non-financial sector continues to deleverage.”

Moody’s left the overall rating for Spanish debt unchanged at Baa3 – just above junk-bond level – but the change in the outlook reduced the likelihood of another downgrade as the country works to rebound from its financial crisis.

via BBC

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