Press Release|Sovereigns
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KBRA Upgrades the Kingdom of Spain's Long-term Ratings to A; Outlook Revised to Stable

7 Nov 2025   |   Dublin

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KBRA Europe (KBRA) upgrades the Kingdom of Spain's long-term ratings to A. KBRA also affirms the short-term ratings of K1. The Outlook on the long-term ratings has been revised to Stable from Positive.

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 decision to upgrade the ratings reflects Spain’s strong post-pandemic economic performance, outpacing the euro area, coupled with improving fiscal metrics and reduced external vulnerabilities. Economic growth reflects increasing economic diversification, steady improvements in the labour market, population growth, wealth gains, and the inflow of European Union (EU) recovery funds. Recent economic momentum has also benefitted from relative energy security, a buoyant tourism sector, and strong immigration flows. The ratings also reflect Spain's large, advanced, institutionally strong, and diversified euro area economy that benefits from European Central Bank and EU support. The Stable Outlook reflects our expectation that Spain’s economy will remain resilient and continue to grow faster than the euro area, supported by a strengthened labour market, increasingly diversified services exports, and reduced external vulnerabilities. These factors should help bolster public finances, although government debt ratios will remain elevated over the medium term. That said, persistent political uncertainty could delay reforms and investment needed to address structural growth challenges.

To access ratings and relevant documents, click here.

Click here to view the report.

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Methodologies

Disclosures

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 www.kbra.com.

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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S. Kroll Bond Rating Agency Europe Limited is located at 2nd Floor, One George’s Quay Plaza, George’s Quay, Dublin 2, D02 E440, Ireland.

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