NEW YORK Dec 4 Moody's Investors Service on
Wednesday revised its outlook on Spain's government bond rating
to stable from negative, citing a rebalancing of the country's
Moody's also affirmed Spain's Baa3 government bond rating.
For the medium term, the outlook for Spain's economy is
brighter, Moody's said.
"From our perspective, with a stable outlook, we see risks
broadly balanced," said Kathrin Muehlbronner, a senior credit
officer with Moody's in London.
"We certainly see the positive signs in the economy,"
Muehlbronner said. But she cautioned that "our expectations are
for relatively moderate growth going forward."
Moody's said in a statement that its outlook on the Spanish
economy "supports Moody's view that Spain's public finances are
on a slowly improving trend."
The ratings agency also said Spain was less likely to see
its access to international lending markets cut off and noted
"the significant reduction in contingent liabilities for the
sovereign emanating from the Spanish banking sector over the
Spain's economy has contracted around 7.5 percent since
2008, when the bursting of a decade-long property bubble left
millions out of work and sent domestic demand into freefall.
The rebound, led by the export sector, is expected to be
shallow, due in part to stubbornly high unemployment. The
European Union expects unemployment to stay above 25 percent
Spain has one of the euro zone's highest budget deficits and
took aid from its euro-zone peers to help rescue its banks.
Standard & Poor's rates the country BBB-minus with a stable
outlook. Fitch rates the country BBB with a stable outlook.