Overview

• Moody's raised Andalusia two notches from Baa2 to A3 with a stable outlook, matching the sovereign for the first time in about two decades.
• The agency upgraded long-term ratings for 14 regional and local governments, moving outlooks to stable after Spain’s sovereign was lifted to A3 on September 26.
• One-notch increases covered País Vasco, Asturias, Castilla y León, Galicia, Madrid, Extremadura, Castilla-La Mancha, Murcia, Comunidad Valenciana and Catalonia, plus Madrid and Barcelona city and the Diputación Foral de Vizcaya.
• Andalusia’s government said the move recognizes disciplined fiscal management, with the higher rating expected to widen its investor base and trim borrowing costs and loan pricing.
• Castilla-La Mancha cited stronger 2024 operating balances and lighter debt, noting Banco de España data showing its debt ratio fell from 35.4% of GDP in June 2015 to 28.5% in June 2025.