S&P sees Spain in stronger position.

  • Reforms since 2010 put Spain in favorable position to benefit from weaker oil, depreciated euro and QE
  • Have raised 2015-2017 average annual GDP projection for Spain by 0.3 pp to 2.2% with some upside potential
  • Expects ECB policy to gradually lead to private sector lending as Spain's recovery gains momentum
  • Expect Spanish net govt debt to peak at over 93% of GDP in 2017

Plenty of good news in the ratings report but most of it is because the ECB is driving rates (and the euro) down.