Press Release|Sovereigns

KBRA Affirms A-/K1 Ratings for the Kingdom of Spain; Stable Outlook

10 May 2024   |   Dublin


KBRA Europe (KBRA) affirms the Kingdom of Spain’s long-term issuer ratings of A-. KBRA also affirms the short-term issuer ratings of K1. The Outlook on the long-term ratings is Stable.

This credit rating is an unsolicited credit rating
With Rated Entity or Related Third-Party ParticipationYes
With Access to Internal DocumentsNo
With Access to ManagementYes

KBRA's affirmation of the ratings reflects Spain’s enhanced economic resiliency since the European debt crisis, driven by competitiveness gains, public sector reforms, increased importance of exports, and widespread private sector deleveraging, that underpins solid pre- and post-pandemic growth. Recent growth has also been supported by energy security and a buoyant tourism sector. The pandemic has contributed to a large-scale deterioration in fiscal metrics, albeit the headline budget deficit and the government debt-to-GDP ratio have since considerably improved. That said, tackling the structural deficit as well as further debt consolidation will be more challenging. In addition, while contained in historical terms, financing costs are elevated compared to some peers and the ECB has had to support Spanish debt. The Stable Outlook balances Spain’s strong post-pandemic economic performance, constructive labour market improvements and consolidating fiscal metrics against political uncertainty that could delay necessary reforms and investments needed to tackle some medium-term growth challenges, such as subdued productivity, high structural unemployment, and demographic pressures. European Union recovery funds should help to put the economy on a path towards improved longer-term fiscal health, although government debt ratios will remain elevated over the medium term. The Outlook also considers relative resilience to energy security, as well as inflationary pressures and tighter monetary policy that weigh on economic growth and public finances. KBRA acknowledges that conflict in the Red Sea adds to the risks, however Spain is not overly exposed.

To access rating and relevant documents, click here.

Click here to view the report.



Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at

There are certain issuers, entities or transactions rated by KBRA Europe or KBRA UK that may be or have relationships with Shareholders and/or Shareholder-Related Companies, as that term is defined in KBRA’s Shareholder and Shareholder Related Companies for KBRA Europe and KBRA UK Policy and Procedure. Relevant disclosure information may be found here.

About KBRA Europe

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider. Kroll Bond Rating Agency Europe is located at 6-8 College Green, Dublin 2, Ireland.

Doc ID: 1004222

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