Moody's raises Spain rating outlook to stable

WASHINGTON: Moody's raised its rating outlook for Spain to "stable" from "negative" Wednesday, citing signs of real improvement in the economy and government finances.

Moody's left the overall rating for Spanish debt unchanged at Baa3 -- just above junk-bond level -- but the change in the outlook reduced the likelihood of another downgrade as the country works to rebound from its financial crisis.

Evidence that the economy is adjusting to new market conditions and improved growth prospects for the medium term "supports Moody's view that Spain's public finances are on a slowly improving trend," the rating agency said.

"The external accounts continue to improve, the situation in the labor market has stabilized and the private non-financial sector continues to deleverage."