Read in Catalan

Standard and Poor's (S&P), one of the world's "Big Three" credit-rating agencies, has improved Catalonia's rating outlook from negative to positive. This means they anticipate they could upgrade their current rating (B+) within the next two years. This follows the possibility of the autonomous community refinancing its short-term debt.

The agency explained in a statement that the improved perspective comes after the Spanish government announced on 26th July it would allow autonomous communities to restructure their short-term debt with long-term loans.

"We believe that the successful refinancing of Catalonia's short-term debt could reduce the possibilities of defaulting on its debt due to the lack of coordination between the autonomous community and the central government, a scenario which currently weighs on Catalonia's credit rating," they write1.

Recent developments

Last October, S&P gave Catalonia a negative rating outlook over the political conflict between the Spanish and Catalan governments and the risk that could end up affecting its ability to meet its financial obligations.

On 24th November, it decided to maintain the negative outlook given the uncertainty over the result of the elections to be held on 21st December that year.

 

Translator's note: 1. I do not have access to the original statement, this is back-translated from the Catalan so might not word-for-word match S&P's verdict.