Overview

• Moody’s applied its September 26 sovereign upgrade of Spain from Baa1 to A3 to sub-sovereign credits on October 1, raising 14 regional and local ratings.
• Andalucía’s long-term rating rose two notches from Baa2 to A3 with a stable outlook, matching the sovereign for the first time in about two decades.
• One-notch upgrades were assigned to País Vasco, Asturias, Castilla y León, Galicia, Madrid, Extremadura, Castilla‑La Mancha, Murcia, Comunidad Valenciana and Cataluña, with improvements also for Vizcaya, Madrid city and Barcelona.
• Outlooks generally shifted from positive to stable after the sovereign-led review, with Madrid highlighted for strong fiscal results, budgetary solidity and stable or declining debt.
• Castilla‑La Mancha linked its higher rating to stronger operating balances and a debt ratio reduced to 28.5% of GDP from 35.4% since 2015, while regions expect cheaper borrowing and a broader investor base.