We have revised our average 2014-2016 real GDP growth projections for Spain upward to 1.6% from 1.2% reflecting the effects of labor and other structural reforms. We are therefore raising our long- and short-term sovereign credit ratings on Spain to 'BBB/A-2' from 'BBB-/A-3'. The outlook is stable, reflecting our current view that risks to the ratings on Spain will remain balanced over the next two years. On May 23, 2014, Standard&Poor's Ratings Services raised the long- and short-term foreign and local currency sovereign ratings on the Kingdom of Spain to 'BBB/A-2' from 'BBB-/A-3'. The outlook is stable. The upgrade reflects our view of improving economic growth and competitiveness as a result of Spain's structural reform efforts since 2010,
