Blogs and advice from Industry leading Specialists
Valuable Opinions, Comments & Gossip
Financial related News & Articles relating to Spain
Latest News, Stories
& Hot Topics
Various Tools & Widgets to help with your financial needs
Tools & Widgets to
help with finances
Polls, Surveys and Opinions featured throughout Tumbit
Featured Polls, Surveys & Stats
Discussions, Advice & Topical Chat
Discussions, Advice & Topical Chat

Direct Catalonia crisis key risk to Spain rating - S&P

Source: Reuters - Mon 23rd Oct 2017
Direct Catalonia crisis key risk to Spain rating - S&P

S&P Global has said it had no specific view on whether or not Spain reinstates direct rule over Catalonia, but is instead waiting to see whether the crisis does any sustained damage to a robust economic recovery.

S&P has a “positive outlook” on its BBB+ Spanish sovereign rating, but the strains over Catalonia’s bid for independence have cast doubt over the near-term upgrade prospects.

Catalonia’s regional leaders face a deadline on Thursday on whether or not to stick to, or abandon, an independence declaration made last week which Madrid has rejected as illegal.

Madrid in turn is threatening to invoke a never-before-used clause of the country’s 1978 constitution, known as Article 155, to reimpose direct rule over the eastern region.

“It remains to be seen what happens. There is clearly a lot of interest in de-escalating the situation so we don’t really have a specific view on whether Article 155 is triggered or not,” Frank Gill, one of S&P’s top sovereign analysts and who is also based in Madrid, told Reuters.

What the firm is looking at more, he said, was what it might do to Spain’s economic and fiscal performance. Before last week’s independence declaration, S&P said it did not expect to cut Spain’s rating unless tensions escalated.

“This is an economy that is growing at 3%, this expansion is not funded by debt, export performance is picking up - it’s been remarkable - so the question is, what does Catalonia mean for all of that?”

Spanish PM Mariano Rajoy issued an appeal for support in the country’s national parliament on Wednesday to take direct control of Catalonia unless the rebel regional government drops its plan to break away.

The move would need only a vote in Spain’s upper house, where Rajoy’s People’s Party holds an absolute majority. It would be the first time in Spain’s four decades of democracy that direct rule has been imposed on a particular region.

The uncertainty has already prompted hundreds of Catalan firms to move their headquarters, led Madrid to trim its economic growth forecasts and buffeted the country’s financial markets.

Gill added that S&P was also keeping an eye on the potential impact on Spain’s debt-to-GDP level, which at more than 96% remains one of the highest in Europe.

“There is still a lot of work to be done in terms of improving the budgetary position,” he said. “It (Catalonia situation) is a very fluid matter.”

Recommended Reading :

* PM announces reduction of Catalan powers without dissolving Parliament

* Rajoy : A leader being forced to act to restore the law in Catalonia

Comment on this Story

 
Be the first to comment on this Story !!

Related Partners

Recommended Items

Related Articles

Related Blogs

 
When shopping for bodyjewelrytips, never buy anything that has nickel. The best type of material is the steel, titanium, wood, anodized gold or gold. Most nickel products will rust and may infect your ear. If you have pierced the naval or eye, you do not need to worry, as that is the most versatile part of the body. You can wear rings, straight, curved or fancy and captive beads. There are many leading body piercing jewelry that offer some of the biggest collection at very affordable price. In regard to shopping, always go to a wholesale shape as that is the sure place of getting any type of body piercing jewelry. The only thing that you need to be careful about is the material used to make the jewelry. There are instances when body piercing might go wrong and the result is an infection. In order to avoid this, make sure that the person doing the piercing is qualified to do so. After piercing is done Bodys piercing trends, you should keep the area sterilized and clean. Use warm water to wipe dirt. Never use spirits as they will corrode the area resulting to a wound which might cause an infection.