WASHINGTON: The ratings agency S&P maintained Spain’s investment-grade sovereign credit rating Friday, but warned tensions between Madrid and Catalonia could weaken growth prospects if left unchecked.
Catalonia is due to hold an independence referendum on Sunday that is opposed by the central government, in one of the greatest political crises to hit the country since the restoration of democracy in 1975.
S&P Global Ratings said Friday it was affirming its BBB+/A-2 long-term sovereign debt rating and said the country had a positive outlook, with its economy expected to grow by about three percent this year — above the eurozone average.
“The positive outlook signifies that we could raise our ratings on Spain within the next 18 months if the country’s strong economic performance continued,” the company said in an analysis of its ratings decision.
However, it added continued turmoil could see the skies turn a little darker.
“We could also revise the outlook to stable if the current tensions between the central government and the regional government of Catalonia escalated and started weighing on business confidence and investment, leading to less predictable future policy responses.”
S&P said Spain’s minority government had limited ability to carry out policies, like budgetary and structural reforms, because of the country’s fragmented parliament.
Catalonia was likely to remain part of Spain, the analysis said, but tensions were also likely to persist.
S&P keeps Spain’s BBB+ debt rating, warns on Catalonia tensions
S&P keeps Spain’s BBB+ debt rating, warns on Catalonia tensions
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
