Structural reforms passed in Spain since 2010 have increased competitiveness, jobs, and exports. Uncertainties about economic performance remain, however, ahead of next year's regional and general elections and in the face of weakening external demand. We view deflation as a drag on Spain's economic and fiscal progress. We are affirming our 'BBB/A-2' long- and short-term sovereign credit ratings on Spain. The outlook remains stable, reflecting our opinion that risks to the ratings are balanced. On Nov. 14, 2014, Standard&Poor's Ratings Services affirmed the 'BBB/A-2' long- and short-term foreign and local currency sovereign credit ratings on the Kingdom of Spain. The outlook is stable. The affirmation reflects what we consider to be balanced risks to Spain's economic recovery ahead
