Moody's upgrades Spanish government's bond rating 1 notch to Baa2 from Baa3
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Ratings agency Moody's has upgraded Spain's bond rating by one notch, citing improved economic prospects and a rebalancing of the economy away from the construction industry toward export-led growth.
Moody's, which made the announcement late Friday, lifted ratings to Baa2 from Baa3, saying the outlook was now "positive." It also upgraded Spain's short-term rating from Prime-3 to Prime-2.
The agency says the government had made "faster than expected" progress with structural reforms in the labor market and public pensions system.
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It also says fiscal measures have improved the stability of the country's debt-laden regional government finances and that Spanish banks now pose "less of a threat."
Moody's says Spain remains encumbered with low fiscal strength because of the government's "significant budget deficit."