Moody’s downgrades outlook for Spain to “stable” from “positive” – ​​Investing.com Spain

(Reuters) – The credit rating agency Moody’s downgraded on Friday the prospect of Spain to “stable” from “positive” because it believes that economic reforms have not had the expected impact and believed unlikely to be made in the coming years, regardless of the government that is formed.

“the institutional improvements that the Spanish government has legislated in recent years, including a greater control over regional finances and the pension reform, have had less impact than Moody’s had anticipated when it assigned its positive outlook in 2014, “the agency said in a statement.

Moody’s noted that this limits the potential budgetary improvement in the future and the path of growth.

the agency, which kept the rating to “Baa2″, said he hoped Spain recorded a budget deficit above the targets agreed with Brussels this year and next.

the agency also expects growth in Spain to slow to 2.8 percent this year -in front of the 3 percent predicted by the Spaniard Government and fall below 2 per percent by the end of the decade.

Moody’s said it is unlikely that Spain, the main political parties negotiate to try to form a government after a fragmented results in the December elections, perform further structural reforms to support growth in the next three or four years, regardless of the government that is formed.

“the political environment is likely to be highly fragmented the next 3-4 years and the pace of reforms will be slow or non-existent,” said the agency .

Before the election, the DBRS rating agency raised its outlook on Spain to “positive” from “stable”, while Standard & amp; Poor’s praised the reforms undertaken by the government of Mariano Rajoy and raised one notch debt rating of the country

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