12 Nov 2015
Fitch downgrades Catalonia to BB; outlook negative
FXStreet (Córdoba) - Fitch Ratings downgraded the Autonomous Community of Catalonia (Catalonia) to 'BB' from 'BBB-' , while keeping a negative outlook.
Among main drivers, Fitch cited Catalonia passing a resolution on 9 November for formally commencing the process for independence.
According to Fitch, Catalonia's 'BB' and Negative Outlooks also reflect the following main factors: The region posted wide negative current balances over 2008-2014 (averaging -16%), and will need funding to finance its expected budget deficit in 2015, which Fitch expects to be around 2% of regional GDP, and over medium term.
Among main drivers, Fitch cited Catalonia passing a resolution on 9 November for formally commencing the process for independence.
According to Fitch, Catalonia's 'BB' and Negative Outlooks also reflect the following main factors: The region posted wide negative current balances over 2008-2014 (averaging -16%), and will need funding to finance its expected budget deficit in 2015, which Fitch expects to be around 2% of regional GDP, and over medium term.