Particle.news
Download on the App Store
4 ARTICLES
·
last mo.

Fitch Confirms Spain at 'A' With Stable Outlook, Pointing to Strong Growth and Falling Debt

Geopolitical uncertainty combined with domestic fragmentation tempers the case for any near‑term upgrade.

Imagen de camareros en una terraza.
Image
El ministro de Economía, Comercio y Empresa, Carlos Cuerpo.

Overview

  • Fitch reaffirmed Spain’s long‑term sovereign rating at A with a stable outlook after its latest review.
  • The agency highlights 2025 GDP growth of 2.8% and a 2026 projection of 2.5%, noting that large migrant inflows and planned regularizations have supported the recovery.
  • Fitch expects public debt to drop below 100% of GDP by end‑2026 and forecasts fiscal deficits of 2.4% in 2026 and 2.6% in 2027.
  • Political fragmentation, stalled budgets before the 2027 elections, and potential reliance on royal decrees are cited as risks to reform delivery and fiscal consolidation.
  • S&P and Scope opened new reviews after markets closed, with El Correo reporting Scope also kept Spain at A, while Middle East tensions and public threats from U.S. President Donald Trump weigh on upgrade prospects.