After Moody’s, Fitch upgrades rating of Spain – ladepeche.fr

After Moody’s in February, the rating agency Fitch raised Friday note attached to the debt of Spain by one notch stressing that country risks “dropped” a new delighted that despite Madrid persistent concern about unemployment.

The new rating assigned by Fitch to Spain’s fourth largest economy in the euro zone remains in the category of issuers average, able to cope with their obligations.

The agency accompanying this note a “stable” outlook, meaning that it does not intend to change in the coming months.

“The risks associated with the creditworthiness of Spain declined since its credit rating was lowered to ‘BBB’ in June 2012, “Fitch wrote in a statement a few days before the grant of a European aid for its banks, whose profound difficulties had shaken the country and provoked strong distrust of markets.

“Financing conditions have improved, the economic outlook is safer and the risk that Spanish banks represent an additional burden sovereign debt fell, “wrote the agency.

Fitch also highlights the “solid” effort by Spain to reduce its public deficit, which had exploded to 11% of GDP in 2009 and was brought back, besides helping banks to 6.6% of GDP at end 2013, in line with the target set with Brussels (6.5%).

Scope for more than a decade by the sectors of construction and real estate, the economy was hit twice, in 2008, by the bursting of the housing bubble and the global financial crisis.

After six years marked by two recessions, Spain timidly returned in 2013 with growth, which has accelerated since January, according to estimates from the Bank of Spain.

“Spain will grow in 2014 by more than 1% in 2015 and our growth is well above 1.5%,” said Thursday the head of the Conservative government, Mariano Rajoy.

Fitch welcomed Friday the progressive improvement: “The rating reflects the diversified economy and high-value added of Spain, which is still recovering slowly after level credit bubble.”

Among the attractions of Spain to confirm his recovery, yet shy, Fitch points to its current account balance, which recorded in 2013 are first surplus since 1986. “This improvement will contribute to help reduce the heavy net external debt of Spain in the medium term “, analyzes the agency.

The Spanish Ministry of Economy expressed his satisfaction in a statement: “The Fitch is the second among the largest, after Moody’s in February, to improve the rating of Spanish debt.”

“We believe that these developments are very positive, especially the recognition of the government’s commitment to reform,” he wrote.

“The pursuit of these reforms will consolidate the economic recovery, which will help to contain the deficit and allow for net job creation this year, “he continued.

Unemployment, near its record high at 25.73% (Thursday revised figure), however, continues to weigh heavily on the economy. The Economy Minister Luis de Guindos has acknowledged this week that “a country with 26% unemployment from a level that is terrifying.”

So, Fitch nuançait Friday his enthusiasm about Spain, noting that his bill “remains lower than other major economies”: “Its growth prospects in the medium term are low, all sectors of the economy is still heavily indebted and unemployment remaining exceptionally high . “