Two weeks after S&P, on 26 September 2025 Moody’s and Fitch upgraded Spanish sovereign debt to A3 and A respectively. All three major agencies now place Spain in the A category.
On Friday 26 September 2025 Moody’s and Fitch upgraded Spain’s sovereign debt. Moody’s raised it by one notch, from Baa1 to A3, with a stable outlook, its best rating for Spain since 2012. Fitch lifted it from A– to A, also with a stable outlook. Two weeks earlier, on 12 September, S&P had raised it to A+.
What the agencies say
All three cite the same reasons: economic growth stronger and more balanced than the euro-area average, an improving labour market, a sounder banking sector and lower household and corporate debt. Spain grew 3.2% in 2024 and was growing at around 3% in 2025.
They also point to the weak spots. Public debt remains above 100% of GDP and will fall slowly, and Fitch warned that fiscal consolidation efforts had been limited. The absence of an approved general budget since 2023 and a fragmented parliament make reforms harder.
Why it matters
A better rating lowers the state’s borrowing costs and, by extension, those of the regions, banks and large companies, whose ratings are usually capped by the country’s. It also widens the pool of international investors able to buy Spanish debt. Spain’s risk premium over the German Bund was then around 60 basis points, its lowest since 2008, and below France’s.
What to bear in mind
For savers, a better rating usually means somewhat lower yields on Treasury bills and bonds, because perceived risk is lower. For companies that borrow on the markets, it improves access terms. Ask your adviser how it affects your bond portfolio.
A country’s rating sums up years of growth, debt and politics in a single letter.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
