The international rating agency Standard & Poor’s (S&P) has announced that it is considering the possibility of downgrading Catalonia’s rating within the next three months due to escalating tensions in relations with Madrid following the independence referendum.
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– S&P has placed the ratings of the autonomous region of Catalonia under review, with negative outlook. The political conflict between the Catalan government and the central Spanish government has escalated following the October 1 referendum on the independence of the region, S&P’s statement published on Wednesday adds.
There is a risk that the escalation could harm coordination and communication between the two governments, which are crucial for Catalonia to be able to service its debts fully and on time, S&P holds.
Therefore, they have decided to place the current Catalan ratings of “B+/B” under review for a potential downgrade and expect to conclude the process within the next three months.
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In the largest political crisis in decades, Catalonia held an independence referendum on Sunday despite a ban from the Madrid government. Images of police violence against unarmed Catalans who turned out for the referendum have raised great concern worldwide, AFP recalls.
