Madrid, Spain – Spain secured a rare triple endorsement from global ratings agencies as Moody’s and Fitch upgraded the nation’s credit standing on Friday, following an earlier move by S&P Global this month. The coordinated upgrades reflect renewed confidence in Spain’s economic trajectory, bolstered by growth momentum, labour market gains, and financial sector stability.
Moody’s lifted Spain’s rating to A3 from Baa1, revising its outlook to stable. The agency cited a “more balanced growth model, improvements in the labour market, and strengthening in the banking sector that increase the economy’s resiliency.”
Fitch, echoing similar optimism, upgraded Spain to A from A-, pointing to recent productivity gains, moderate wage growth, and relatively low energy prices that have boosted competitiveness and reduced external vulnerabilities. The agency kept its outlook at stable.
The decisions follow S&P Global’s earlier upgrade, which highlighted Spain’s improved external finances and the private sector’s significant contribution, representing more than half of GDP.
Spain’s economy expanded faster than expected in the second quarter, outperforming euro zone peers across all major sectors. Meanwhile, unemployment fell to its lowest level since 2008, underscoring a strengthening labour market.
The Spanish government raised its annual growth forecast earlier this month, citing steady post-pandemic expansion. This resilience has contrasted sharply with stagnation across parts of Europe still grappling with energy shocks and weak productivity.
For policymakers in Madrid, the triple Spain Credit Rating upgrade represents a crucial vote of confidence ahead of fiscal planning. Analysts suggest it could lower borrowing costs, attract foreign investment, and solidify Spain’s standing among euro zone economies navigating uneven recovery paths.
