13.09.2025

Spain’s credit rating upgraded to A+ by S&P due to strong economic growth

On 12 September 2025, S&P Global Ratings upgraded Spain’s long-term sovereign credit rating in both foreign and local currency to A+ from A. The short-term rating was affirmed at A-1, and the outlook was set to stable.

What does the “A+” credit rating mean and why is it important?

The “A+” rating means that S&P considers Spain to be a country with low credit risk and a strong ability to meet its financial obligations, although not at the level of the highest ratings such as AA or AAA. The previous “A” rating already indicated solid fundamentals, but the upgrade further increases investor confidence in Spain as a stable destination for investment.

Main reasons for the credit rating upgrade

◉ Strong economic growth – GDP growth is forecast at 2.6 percent in 2025, which is three times higher than the eurozone average. Reuters+1
◉ Deleveraging of the private sector – over the past decade, the private sector has reduced its debt levels, strengthening the country’s external financial position and lowering vulnerability to changes in external financing. Reuters+1
◉ Greater resilience to economic shocks – supported by a strong savings position and export performance. Reuters+1
◉ Demographic growth through immigration – mainly from Latin America, boosting the labor market and domestic demand. Investing.com
◉ Positive effects of structural reforms – reforms supporting employment growth and higher consumption. Investing.com
◉ Service based economy and limited exposure to US tariffs – reducing the risk of direct impact from trade tensions with the United States.

What does this mean for investors and property buyers?

◉ Lower financing costs – an improved rating typically reduces government borrowing costs and may contribute to lower mortgage interest rates.
◉ Higher international confidence – Spain becomes more attractive to foreign investors, including in the luxury real estate segment.
◉ A more stable economy – lower vulnerability to external shocks makes property purchases more widely perceived as a safer investment.

Summary

The upgrade of Spain’s credit rating to A+ by S&P Global Ratings is a signal of growing confidence in the economy, driven by strong growth, structural reforms, and a solid external balance. For investors and those planning to purchase property, especially in regions such as the Costa del Sol, Marbella, and Sotogrande, this is positive news, indicating a safer and more stable market.

If you would like to learn how these economic changes are affecting the luxury real estate market from Malaga to Sotogrande, contact Gecko Real Estate Group.