...In our opinion, reforms passed since 2010 have put Spain in a favorable position + to benefit from weaker oil prices, the depreciated euro, and the European Central Bank's accommodative monetary stance. Consequently, we have raised our 2015-2017 average annual GDP projection by 0.3 of + a percentage point to 2.2%, with some upside potential. Still, we think uncertainties about a possible macroeconomic and fiscal policy + shift remain ahead of this year's regional and general elections. We are therefore affirming our '###/A-2' ratings on Spain. + The stable outlook on Spain balances our projections over the next two years of a + broad-based economic recovery and gradual budgetary consolidation against risks connected to Spain's large net external liability position, and the potential negative impact of deflationary pressures, or weak external demand, albeit muted by the ongoing recovery in domestic demand....
