S&P Global announced on Friday that it has upgraded Spain’s long-term sovereign credit rating from “A” to “A+,” highlighting significant progress in the country’s economic fundamentals.

The agency pointed to a private sector–led improvement in Spain’s external finances, underpinned by a strong culture of savings and consistently solid export performance.

Over the past decade, Spain’s private sector has undergone extensive deleveraging, steadily reducing debt levels and improving financial discipline. This structural shift has substantially strengthened the nation’s external balance sheet, leaving the economy far less exposed to sudden disruptions in external financing.

According to S&P, these reforms and adjustments have made Spain more resilient to global economic shocks, better positioned to withstand downturns, and more capable of sustaining growth in a challenging international environment, Reuters news agency reports.

“Spain's service-based economy and limited US trade exposure insulate it from the immediate consequences of US merchandise tariffs,” according to a statement made by the agency.

Spain’s economy has continued to grow at a steady pace in the post-pandemic period, outperforming many of its eurozone counterparts that are grappling with sluggish recovery.

The government projects gross domestic product to expand by 2.6% this year.

In the second quarter, GDP growth exceeded expectations, rising 2.8% year-on-year, fuelled by strong investment and resilient consumer spending.

Despite this momentum, the government faces challenges in advancing its policy agenda within a deeply fragmented parliament, where it must navigate delicate negotiations and make concessions to a wide range of political parties.

Furthermore, the global ratings agency also maintained Spain’s outlook at “stable,” signalling confidence in the country’s continued economic resilience and fiscal management.