S&P upgrades Spain's rating to 'A+' from 'A/A-1'

(Reuters) - S&P Global raised Spain's long-term sovereign credit rating to "A+" from "A" on Friday, citing a private sector driven improvement in the country's external finances, supported by high savings and robust exports.

A decade of private sector deleveraging has strengthened Spain's external balance sheet, making the economy less vulnerable to sudden external financing shocks and more resilient to downturns.

"Spain's service-based economy and limited U.S. trade exposure insulate it from the immediate consequences of U.S. merchandise tariffs," the agency said in a statement.

The country's economy has steadily expanded in the aftermath of the pandemic, outpacing the sluggish growth of eurozone peers. The government expects gross domestic product to rise by 2.6% this year.

Second-quarter GDP data beat forecasts as output grew 2.8% year-on-year, stoked by investment and consumption. However, the government struggles to pass legislation in a fragmented parliament as it balances concessions to various parties across the spectrum.

The global ratings agency affirmed Spain's outlook at "stable".

(Reporting by Bageshri Banerjee and David M. Latona; Editing by Alan Barona)

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