(Reuters) -Spain received a double boost from global ratings agencies Moody's and Fitch on Friday, joining S&P Global to upgrade the country's rating citing its improving economy and labour market.
The country's economy, which expanded more than initially expected, outpaced its euro zone peers in the second quarter as all major sectors expanded. Unemployment also fell to its lowest levels since early 2008.
"Spain's economic strength is improving due to a more balanced economic growth model, improvements
in the labour market, and strengthening in the banking sector that increase the economy's resiliency," Moody's said, as it raised the country's rating to 'A3' from 'Baa1'.
Fitch seconded that sentiment and gave Spain an 'A' rating, a notch above the 'A-' it previously held.
"Recent productivity gains, moderate wage growth and relatively low energy prices have boosted external competitiveness and strengthened private external balance sheets," Fitch said on Friday.
Spain had received a rating boost from S&P Global earlier this month, citing improved external finances driven by its private sector, which represents over half of its GDP.
The Spanish government had raised the annual economic growth forecast of the country earlier this month, helped by the steady economic expansion of the country after the pandemic, something that has hindered growth at other European peers.
Moody's also revised the country's outlook to stable from positive, while Fitch maintained it at stable.
(Reporting by Yamini Kalia in Bengaluru; Editing by Krishna Chandra Eluri)
