Moody's raises outlook for Spanish Banks

Credit ratings agency Moody's raised on Thursday its outlook for Spain's banks from negative to positive after concluding its review on the ratings of 20 banks that had started on March, 17, 2015.

Spanish banks had negative outlook for seven years and the upgrading was due to Spain's "robust economic recovery" that was helping strengthen the European Union's fifth-largest economy financial institutions.

Moody's Analyst and Vice-president Alberto Postigo said Spain's economy would perform better this year and the following year than other European economies "with a predicted growth rate of 2.6 percent and 2.2 percent respectively".

Despite improvements, Postigo said Spain had to face some challenges, such as that one in four Spaniards are unemployed and the levels of public and private debt are "high".

Moody's sovereign rating for Spain is Baa2 with positive outlook.

Spain emerged from economic recession for the first time in several years in the third quarter in 2013. Nowadays the Spanish government predicted a growth rate of around 3 percent for 2015. Endit