Positive financial news for the region comes alongside the appointment of the new separatist leader, Quim Torra, in the form of the removal of a debt warning.
S&P, a ratings agency, have axed the downgrade warning for Catalonia from the CreditWatch negative.
This is one of the first steps in recovery from the aftermath caused by the regions major push for independence last year, resulting in Spain’s most severe political crisis in decades.
However, the warning imposed on Catalonia’s government debt in October 2017, by Fitch, another global ratings agency, continues to stand. Despite their move, S&P also made it clear that the overall financial outlook remains negative, as they state in their press release…
‘The uncertainty that continues to affect Catalan politics could hamper the essential coordination between the two governments on which Catalonia depends for making its scheduled debt service repayments. However, we don’t think this potential for increased confrontation will be resolved in the immediate or short term, but rather drag on in the medium to long term.’