Standard & Poor's rises ICO rating to BBB/A2 with a stable outlook
The higher rating emerged in the wake of the upward revision of Spain's sovereign rating on 23 May
The credit rating agency Standard & Poor's has upgraded ICO credit rating from BBB-/A3 to BBB/A2, with a stable outlook. This improved rating was the result of an upgrade in the Kingdom of Spain's status, announced by the agency on 23 May. ICO has the same rating as the Spanish Treasury, with Spain's explicit, irrevocable, direct and unconditional backing.
The agency feels that change to Spain's credit rating is a result of improved growth forecasts and the competitiveness of the Spanish economy as a result of the reforms undertaken since 2010. As consequence of these reform and the expected continuance of accommodating policies within the eurozone, the agency upgraded its growth forecast for the 2014-2016 period from 1.2% to 1.6%.
This upward review of the ICO rating, the first since 2009, closely reflects more positive investor sentiment and significant flows of foreign investment to Spain in recent months from foreign investors. Driven by higher international demand, the Institute's credit activities have risen to 6.2 billion euros, 65% of the programme budget for 2014. Download the Standard & Poor's report.