Fitch Affirms Spain at ‘A-‘; Outlook Stable
Fitch Ratings has affirmed Spain’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at ‘A-‘ with a Stable Outlook.
KEY RATING DRIVERS
The Covid-19 pandemic has had an increasingly significant impact on the Spanish economy and the sovereign fiscal position. The ratings are nevertheless supported by a high value-added and diversified economy, strong governance indicators, and ease of doing business and human development rankings that are in line with or higher than the ‘A’ peer median.
We expect Spain’s economy to recover in 2021, especially when the vaccine rollout facilitates a material easing in social distancing measures and provides a powerful boost to contact-intensive industries, which make up a large share of the economy.