Moody’s affirms Spain’s ‘Baa2’ rating, yet cuts outlook to ‘stable’

Moody’s Investors Service affirmed Friday Spain’s sovereign rating of “Baa2” but lowered the outlook on the rating to stable from positive.

The ratings agency said while the banking sector has stabilized and is in better shape to support the economy, there are still some reforms that need to be implemented.

“The momentum behind further reform has faltered” amid several elections in the recent years and an “above-trend” economic growth, Sarah Carlson, senior vice president of Moody’s sovereign risk group, said in a statement. Baa2 is two notches above junk bond territory.

Source: MarketWatch