FX.co ★ S&P Upgrades Spain’s Credit Rating to A+

S&P Global has upgraded Spain's long-term sovereign credit rating from A to A+, while maintaining a stable outlook. The agency attributed this improvement to enhancements in Spain's external finances, driven by the private sector, substantial savings, and robust export activities. Over the past decade, the private sector has been reducing its debt, bolstering the country's external financial stability, thereby decreasing its susceptibility to abrupt external financial shocks and enhancing its resilience against economic downturns. The statement further noted that Spain's economy, which is primarily service-oriented with minimal exposure to US trade, is shielded from the immediate effects of American merchandise tariffs. The Spanish government anticipates a GDP growth of 2.6% for the year, with the second quarter witnessing a 2.8% growth, fueled by investment and consumption. Currently, Moody's rates Spain at Baa1 with a positive outlook, and DBRS has most recently assigned it an A (high) rating with a stable outlook.