The rating agency considers that the Basque Autonomous Community has “sufficient credit strength.”
The credit rating agency Moody’s has confirmed Euskadi’s classification at ‘A3’ (notable low) and has improved its outlook from “stable” to “positive” considering that it has “sufficient credit strength”, even above the position of Spain (Baa1) (high approval).
As reported this Monday by the Department of Economy and Finance of the Basque Government, the agency has 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.
Along these lines, Moody’s highlights that in recent years there have been “very low” financing deficits or surpluses and a reduced debt burden, which is why it anticipates that Euskadi “will maintain solid fiscal results over the next three years.”
In its report, the rating agency highlights the “solid budget management strategies” of the Basque Government, which has applied “strict budget control plans” and values ”transparency and promptness in the presentation of financial reports.”
Source: Eitb
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