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Fitch Ratings affirms Autonomous Community of Catalonia's IDR at 'BB'.

Barcelona: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, affirmed the Autonomous Community of Catalonia's (Catalonia) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BB' and removed them from Rating Watch Negative (RWN).

The Outlook is Stable. The Short-Term Foreign Currency IDR of 'B', and the ratings on the EMTN programme and bond issues - all rated at 'BB'/'B' have also been affirmed and removed from RWN. The rating actions reflect: (i) the central government is continuing to service Catalonia's debt and despite the political uncertainties, we consider this will continue; (ii) the tensions between the governments have reduced, while pro-independence parties have a majority at the regional parliament; and (iii) the Catalan economy is performing well, as indicated by the increase in the number of workers.

It placed Catalonia on RWN on 5 October 2017 following the escalation of the political tensions between the central government and Catalonia, in the aftermath of the referendum held on 1 October, which was ruled illegal by the Spanish constitutional court. Intervention by the central government in Catalonia's administration led to regional elections taking place on 21 December.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Geographic Code:4EUSP
Date:Jul 18, 2018
Words:196
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