Standard & Poor's (S&P) announced Friday that it raised Spain's sovereign credit ratings to "A-" from "BBB+", while the outlook is positive.
"We raised our ratings on Spain in view of the country's continuously strong economic performance, accompanied by a solid current account surplus and ongoing budgetary consolidation," the rating agency said in a statement.
After expanding 3.1 percent last year, Spain's economy is forecast to grow by 2.7 percent this year, S&P said.
The rating agency said it anticipates economic growth in Spain to surpass the eurozone average throughout the 2019-2021 period.
"We also expect economic performance to remain balanced, with domestic demand remaining the main driver of growth," S&P said, adding it expects private consumption to increase, inflation to remain low, and consumer sentiment to stay strong.
"The positive outlook signifies that we could raise our ratings on Spain within the next 24 months if the government achieves greater consolidation of public finances than we currently expect," the statement said.
However, S&P also warned that Spain's outlook could be revised to stable if economic growth comes weaker than the current estimates, or the tensions between the central government and the regional government of Catalonia would threaten business confidence and investments.