Spain has secured its third consecutive credit rating upgrade as Fitch and Moody’s joined S&P Global in improving their assessments of the country’s sovereign creditworthiness. These upgrades reflect Spain’s ongoing economic momentum, which continues to outpace many European peers.
Fitch raised Spain’s long-term rating to “A” from “A-,” noting productivity gains, moderate wage growth, and low energy prices that have strengthened competitiveness. The agency also highlighted Spain’s limited exposure to U.S. tariffs and reduced external debt as key factors supporting resilience.
Moody’s upgraded Spain’s rating to “A3” from “Baa1,” citing a more balanced growth model, labour market progress, and a stronger banking sector.
Spain’s economy benefits from foreign investment, thriving tourism, and increased immigration. The government lifted its 2025 GDP growth forecast to 2.7%, well above the euro area average of 1.2%. S&P Global praised Spain’s improved fiscal position and ability to withstand economic shocks with its recent upgrade.
Judith Arnal, senior fellow at Madrid’s Elcano Royal Institute, underlined Spain’s shift from reliance on tourism to sectors like business services and telecommunication.
“Spain has competitive firms able to export beyond traditional sectors,” Arnal stated.
She also noted job creation has been driven largely by immigrants, resulting in broad GDP growth though more moderate gains per capita.
Political uncertainty remains a challenge, but Arnal warned that “fiscal consolidation and structural reforms will be the true test over the medium term.” Sustained reforms will be crucial to maintaining growth and investor confidence.
Spain’s relative insulation from global trade tensions and efforts to diversify its economy bolster its outlook.