KBRA Affirms A/K1 Ratings for the Kingdom of Spain; Stable Outlook
8 May 2026 | Dublin
KBRA Europe (KBRA) affirms the Kingdom of Spain's long-term issuer ratings of A. KBRA also affirms the short-term 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 Participation | Yes |
| With Access to Internal Documents | No |
| With Access to Management | Yes |
KBRA affirms Spain’s long-term ratings, reflecting the country’s large, advanced, institutionally strong, and diversified euro area economy, which benefits from European Central Bank and European Union (EU) support. The Stable Outlook reflects KBRA’s expectation that the Spanish economy will continue to outpace euro area growth, supported by increasing economic diversification, steady labour market improvements, net immigration, private sector deleveraging, EU recovery fund inflows, and public sector reforms. Concerns persist about productivity shortfalls and the reliance on increased labour inputs. Resilient growth and labour market dynamics should continue to support public finances, although government debt ratios are likely to remain elevated over the medium term. Spain’s external position is underpinned by persistent current account surpluses and a broader services export base, although it remains exposed to global trade disruptions and geopolitical tensions, including vulnerability to the current energy supply and price shock. In addition, persistent political fragmentation could delay reforms and investment needed to address structural growth challenges.
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