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
Closing Bell: Saudi main index closes in red at 10,847
RIYADH: Saudi Arabia’s Tadawul All Share Index dipped on Wednesday, losing 58.51 points, or 0.54 percent, to close at 10,847.93.
The total trading turnover of the benchmark index was SR3.78 billion ($1 billion), as 73 of the listed stocks advanced, while 187 retreated.
The MSCI Tadawul Index decreased, down 7.09 points or 0.48 percent, to close at 1,472.98.
The Kingdom’s parallel market Nomu lost 178.75 points, or 0.77 percent, to close at 22,916.83. This comes as 30 of the listed stocks advanced, while 37 retreated.
The best-performing stock was the Power and Water Utility Co. for Jubail and Yanbu, with its share price surging by 8.47 percent to SR31.24.
Other top performers included Saudi Paper Manufacturing Co., which saw its share price rise by 6.13 percent to SR53.70, and Jamjoom Pharmaceuticals Factory Co., which saw a 4.58 percent increase to SR137.
On the downside, the worst performer of the day was CHUBB Arabia Cooperative Insurance Co., whose share price fell by 5.14 percent to SR17.53.
Saudi Kayan Petrochemical Co. and Arabian Internet and Communications Services Co. also saw declines, with their shares dropping by 4.87 percent and 4.43 percent to SR4.88 and SR181.40, respectively.
On the announcement front, Saudi Kayan Petrochemical Co. announced its annual financial results for 2025, with sales dropping 3.06 percent year-on-year to SR8.45 billion. The company also recorded a net loss of SR893.86 million.
In a Tadawul statement, the company said the net loss and decline in annual sales were driven by a drop in average selling prices, despite higher sales volumes.
