RTTNews - Moody's Investors Service said in a report on Thursday that Spain's Aaa ratings, were underpinned by very high levels of economic, institutional and government financial strength, which contribute to very low susceptibility to event risk. The ratings have a stable outlook.

Anthony Thomas, a Vice President-Senior Analyst in Moody's Sovereign Risk Group said, Spain entered the global crisis with a robust fiscal position compared with many other countries. While its debt metrics have subsequently deteriorated, they should not stretch debt affordability to a level that would undermine the rating.

Moreover, the rating agency considers Spain's government to be a 'resistant' Aaa entity in the context of the global crisis.

Meanwhile, Moody's noted that the impact of the global crisis on Spain was exacerbated by a collapse in the housing construction, one of the main driver's of the economy's growth. The rating agency said the sector would eventually recover, although it was unlikely to regain its former vigor.

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