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Ratings agency Moody’s upgrades Spanish outlook

Updated at: 12/05/2013 7:06 AM
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(AP) MADRID - Ratings agency Moody’s has cited improvements in Spain’s public finances and a reduction in private-sector debt.

The agency announced Thursday it has changed the rating on government bonds to stable from negative, though the rating remains at Baa3 indicating a moderate credit risk.

It said in a statement that Spain’s finances "are on a slowly improving trend," with the Spanish treasury comfortably raising funds on financial markets this year at interest rates lower than in 2012. Non-financial sector companies are deleveraging, and the jobless rate has stabilized, though it is still high at 26 percent.

Moody’s also said it expects any further recapitalization of Spanish banks, hurt by the 2008 collapse of the once-booming real estate sector, will be limited.

(Copyright 2013 by The Associated Press. All Rights Reserved.)