Spain Bailout Less Likely on Lower Funding Costs: Moody’s

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Spain is less likely to need a sovereign bailout now than it was in October as funding costs have fallen since then, Moody’s Investors Service said.

“When we did our last rating action we said we do attach quite a high likelihood for Spain’s having to ask for an ESM precautionary credit line -- that is embedded in the current rating,” Kathrin Muehlbronner, an analyst at Moody’s, said in an interview in Madrid today. “At the moment we would see the likelihood as lower than back in October.”