MADRID, April 25 (Xinhua) -- The ratings agency, Fitch, upgraded on Friday its rating on Spain's sovereign debt from BBB to BBB+ with stable outlook.
Fitch attributed this improvement to Spain's better economic situation and its reduction of public deficit.
Fitch said that "financing conditions have improved, the economic outlook is more certain, and the risk of Spanish banks posing an additional burden on the sovereign has diminished."
Fitch highlighted that Spain had made big efforts to reduce its fiscal deficit in 2012 and 2013, noting that the country's economy was in recession during those years.
"Spain's fiscal track record over the past two years has been strong," Fitch said, while adding that "its headline fiscal deficit (excluding bank support) declined by 2.5 percent of GDP in 2012-13, despite a 2.2 percent drop in nominal GDP over the same period."
The ratings agency also praised the reforms implemented by the Spanish government on pensions, labor market, financial sector and fiscal issues as they "have improved the long-term outlook for the Spanish sovereign."
Fitch had revised up its outlook for Spain's government debt on Nov. 1 when the agency changed it from negative to stable.