The rating agency believes that the Basque Autonomous Community has “sufficient credit strength”.
Credit rating agency Moody’s has affirmed Euskadi’s rating at ‘A3’ (remarkably low) and upgraded its outlook from ‘stable’ to ‘positive’, as the country has ‘sufficient credit strength’, even above Spain’s ranking (Baa1) (high approval ).
As reported on Monday by the Ministry of Economy and Finance of the Basque Government, the agency assessed that the Basque tax regime allows this improvement by understanding that the fiscal framework is “greater” than the rest of the autonomous communities under the common regime and that Euskadi’s “comfortable liquidity position” significantly reduces refinancing risk.
In this context, Moody’s emphasizes that there have been “very low” financing deficits or surpluses in recent years and that the debt burden has decreased. Therefore, the company expects Euskadi to ‘maintain solid fiscal performance over the next three years’.
In its report, the rating agency highlights the “solid fiscal management strategies” of the Basque government, which has implemented “strict fiscal control plans” and values ”transparency and speed in the presentation of financial reports.”
Source: EITB
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
