Standard & Poor's Ratings Services said Wednesday it is keeping Spain's long and short-term sovereign debt rating at BBB+/A-2 and the outlook negative
"In our view, Spain's commitment to the ongoing implementation of a comprehensive fiscal and structural reform agenda remains strong," said the ratings firm
The negative outlook reflects S&P's view of "multiple risks to Spain's economic rebalancing, the potential for the crystallization of additional contingent liabilities, and the effectiveness of the eurozone policies in stabilizing funding markets
" The ratings firm said it expects the actual cost of the government providing capital support to distressed Spanish banks will be "significantly lower" than the current €100 billion estimate, owing to the government's goal of cutting the burden to Spanish taxpayers of bank restructuring
S&P said Spain has a risk of greater debt slippage in 2012 -- overshooting the target of 6.3% of GDP -- and 2013
S&P said it could lower its ratings on Spain to below BBB if it sees euro-zone support failing to "engender confidence" to keep government borrowing costs at levels consistent with debt sustainability
