Fitch Ratings said the establishment of a new government in Spain has limited impact on the country's sovereign credit profile as near-term changes to economic and fiscal policy are unlikely.
Socialist Pedro Sánchez became the new Spanish prime minister June 1 as Mariano Rajoy was ousted in a no-confidence vote. The new government, however, is not expected to serve a full term, according to Fitch.
"We do not view the vote as representing majority support for a lasting Socialist Party government and do not expect significant reforms, with an early election on the cards," the rating agency said.
The absence of increased support for populist and anti-euro parties also limits the risks to Spain's credit metrics, Fitch said.
Rating agency DBRS also suggested that Spain's economic growth may withstand the political uncertainty, as it has done in recent years.
However, DBRS warned against the potential reversal of labor and pension reforms that could materially affect Spain's fiscal outlook.
Spain received rating upgrades from Fitch in January and from DBRS in April.
