▲ Up
 
14:14 29-05-2015
MAIN Russian
About us On-line subscription
KazakhstanTajikistanUzbekistanKyrgyzstanTurkmenistanWorld
POLITICSBUSINESSINCIDENTSSOCIETYCULTURESPORTANALYSISSCIENCE
S&P upgrades Spain's BBB/A-2 sovereign-debt ratings

Bishkek (AKIpress) - aaf477fffa47e38537afe7f5ee1b6eba Standard & Poor's Ratings Services on Friday upgraded Spain's sovereign-debt ratings by one notch, citing improved growth prospects for one of the euro zone's hardest-hit economies, the S&P said.

The upgrade, to BBB/A-2 from BBB-/A-3, pushed the ratings to two notches above junk status. S&P said its outlook for Spain is stable and reflects its view of "improving economic growth and competitiveness as a result of Spain's structural reform efforts since 2010, including the 2012 labor reforms."

The ratings firm raised its average real gross-domestic-product growth projections for the country to 1.6% from 1.2% for 2014-16--roughly in line with recent government growth forecasts.

Spain's economy is coming out of a six-year downturn, having grown for three successive quarters. In the first quarter, annualized growth reached 1.6% according to Eurostat.

But significant imbalances remain in the economy. Its government debt load is rising fast because of a large budget deficit, unemployment has jumped above 25% after tens of thousands of companies closed during the crisis, and house prices have plunged.

S&P said a gradual recovery in employment would contribute to improve Spain's fiscal position and stem the rise of bad debts in the banking system. It pointed to export growth as a driver of growth, but cautioned that "the still very high debt levels in the economy will probably lead to an extended period of relatively subdued domestic demand as companies and households attempt to reduce leverage."

Should inflation remain at the extremely low levels of the last six months for extended periods, the deleveraging process might take longer still, the ratings firm added.

Following Friday's upgrade, S&P has the same rating on Spain as Moody's Investors Service--which upgraded Spain in February and has a positive outlook on its debt. Fitch Ratings upgraded Spain last month to triple-B-plus from triple-B, putting it a notch above the other two agencies.


Twitterfacebookprint
15:48 23.05.2014
LATEST NEWS
13:36 Korea Eximbank to provide US$3bn loans to Uzbekistan13:20 Surgeons of Bishkek, Berlin to jointly operate patients with burn injuries for free13:11 Young Australian women trying to join IS, say police13:03 Turkmenistan might extend presidential term up to seven years12:44 PMs of Kyrgyzstan and Russia discuss Kambar-Ata HPP and upper-Naryn cascade construction12:26 CIS Council of Heads of Government adopt action plan on financial sphere12:19 Kyrgyzstan intends to resolve issue of Kyrgyz-Tajik border delimitation12:17 Volcano erupts on southern Japanese island11:50 Kyrgyzstani wins bronze medal at International Mendeleev Chemistry Olympiad11:43 42 minors commit suicide in Q1 201411:39 Head of Bishkek Humanities University department detained for receiving bribe11:35 54 minors have experienced sexual offenses in Q1 201511:29 More than 300 thousand families need housing in Kyrgyzstan, MP says11:23 Majority coalition to consider distribution of $100 million received for Jerooy competition11:23 Kazakhstan's national holding KazAgro changes chairman11:17 Head of Department of Tourism Maksat Chakiyev detained for bribery on large scale11:11 Tajikistan recognizes Jabhat al-Nusra and Islamic State terrorist organizations10:57 Chairman of committee on education discusses vocational and technical education with German colleagues10:55 Kazakhstan hosts meetings of CIS Council of Heads of Government and Eurasian Intergovernmental Council on Friday10:51 Osh interregional hospital to receive equipment from India to establish telemedicine center
Astana
+22° C
Ashgabat
+35° C
Bishkek
+29° C
Dushanbe
+28° C
Tashkent
+32° C
exchange rates
 
63.62
58.15
9.43
1.11
203.17
185.80
29.97
3.56
6.86
6.27
1.01
0.13
2710.18
2512.73
405.44
50.01
3.83
3.50
0.56
0.07

© AKIpress News Agency - 2001-2015. All rights reserved
Republication of any material is prohibited without a written agreement with AKIpress News Agency. Any citation must be accompanied by a hyperlink to www.akipress.com.
Our address:
Moskovskaya str. 189, Bishkek, the Kyrgyz Republic
e-mail: english@akipress.org, akipressenglish@gmail.com;
Tel/Fax: +996(312)90-07-75