Spain’s growing economy and improving financial health has recently lead Fitch ratings to upgrade the country’s long term debt rating to A- with a stable outlook.
The leadings ratings agency raised Spain’s rating noting the nations strong economic recovery, growing GDP and falling unemployment.
Each of the major ratings agencies downgraded Spain in 2012 in response to a proposed EU bailout brought on by the weakness of its banks.
Now, six years later, Spain is enjoying an economic recovery with GDP growth, which averaged 3.3% between 2015 and 2017, expected to continue to continue this year.
Unemployment levels have fallen steadily over the last three years to 16.7% and the central government deficit is on target to hit 3.1% this year, dropping from 4.5% in 2016.
Equally importantly, Spain’s banking sector is also enjoying the fruits of recovery having reduced its debt by 25% since 2015.
“The Spanish banking sector’s overall credit fundamentals have steadily improved over the last two years,” stated the ratings company in its report.