trending Market Intelligence /marketintelligence/en/news-insights/trending/g56g9_1_qtsasl5onviaaw2 content esgSubNav
In This List

Fitch: Spain's government change poses limited risk to credit profile

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


Fitch: Spain's government change poses limited risk to credit profile

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.