⁍ Ratings agency S&P Global Ratings on Friday revised Spain’s outlook to ‘negative’ from ‘stable’
Agency cited possibility that a budget will not be passed and economic weakness could persist into 2021 and 2022 in Spain.

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⁍ Peer agency Moody’s affirmed its rating on Spain at ‘Baa1’ and maintained outlook at ‘stable

– The outlook for Spain’s credit rating has been revised to “negative” from “stable,” Reuters reports. S&P Global Ratings on Friday revised Spain’s outlook to ‘negative’ from ‘stable’, saying its policy response to rising economic and fiscal challenges are at risk from political fragmentation and reform fatigue. The agency cited the possibility that a budget will not be passed and economic weakness could persist into 2021 and 2022. “We believe that the resulting economic pressures on Spain may have increased prospects of a political agreement this autumn for a 2021 budget, while building consensus behind the pro-growth reforms detailed in Spain’s National Reform Program,” S&P said. “Nevertheless, given the possibility that a budget may not be passed and economic weakness could persist into 2021 and 2022, we are revising our outlook on Spain to negative from stable while affirming ‘A/A-1’ long and short-term sovereign credit ratings.” (Moody’s kept Spain’s outlook at stable.)