The Balearic Islands have not achieved this rating since 2011 and facilitates access to the markets to issue debt
Raises the credit rating of the Balearic Islands
The rating agency stresses that the tax reform promoted by the Government will not alter the trajectory of revenue growth
The US rating agency Standard & Poor’s (S&P) announced this Friday that it had raised the credit rating of the Balearic Islands from ‘BBB+’ to ‘A-‘, with a stable outlook. Since 2011, the Autonomous Community has not achieved this rating, which allows greater ease of access to the markets to issue debt.
The agency stresses that, although the debt of the Balearic Islands continues to be high, it expects its reduction to accelerate thanks to the expansion of revenues and moderate indebtedness. It should be remembered that, according to the scenario foreseen by the Government of the Balearic Islands in its regional budget bill, 32 million euros will reduce the regional debt in 2024 (8,750.61 million in total), and the ratio over GDP will fall from 24.9% to 24%.
On the other hand, S&P estimates notable increases in the income of the Balearic Islands during the next two years, largely due to the recovery of the economy after the pandemic. However, it points to a necessary moderation of the growth of the expenditure.
Translated with www.DeepL.com/Translator (free version)